1.           OPENING BALANCE. The opening balance of purchase ledger is
transferred from previous year. The auditor can vouch each account to’ see that opening balances are correct.
CREDITORS SCHEDULE. The schedule of creditors is compared with entries in purchase ledger. The auditor can see that all accounts have been recorded
VERIFICATION FROM CREDITORS. The auditor can send letters to
creditors to note exact amount payable to them. The confirmation from other sources is essential.
PROVISION FOR DISPUTE. The auditor should note that management has created reasonable amount of provision for dispute. The audit of purchase ledger is necessary to check disputed amount.
5.           ADVANCE PAYMENTS. Any Creditor account may show debit balance due to advance payments on accounts of purchases. The order letters, bills, and correspondence may be checked to know exact position of accounts.
6.           GOODS IN TRANSIT. The goods may be in transit. The entry cannot be made unless goods and invoices are received. The auditor can check that goods in transit are not recorded in books of accounts.
7.           BILLS ACCEPTED. The bills may be accepted for payment of debt. The bills can be examined in bills payable book and bills payable account.
8.           GOODS RETURNED. The auditor can vouch goods returned recorded in purchases return journal. The purchase returns are posted to respective creditors account.
9.           DISCOUNT RECEIVED. The creditor can allow cash discount for
making payments before time. The auditor can vouch cash discount in cash journal, discount account, and creditors account in purchase ledger.
10.       CASH PAID. The auditor can vouch cash paid with receipt of seller, cash journal entry and posting in purchase ledger. The auditor can see that there is no difference in books of accounts.
11.       ALLOWANCES. The sellers can offer allowances for promoting sales or, avoiding sales returns. In both cases a note is received from sellers. The auditor should vouch such allowances in purchase journal and purchases account.
12.       SELF-BALANCES SYSTEM. The purchase ledger may be kept under self-balances system. The purchase adjustment ccount should tally with account maintained in it.

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