Vat Mohit/ Essay

Submitted By MohitWave
Words: 316
Pages: 2

REF. Internal Audit Division
AUDIT: CYCLE: SUBJECT: YEAR: VAT Revenue 2001 PREPARED BY: DATE: REVIEWED BY: DATE:

Audit Objective - Accuracy (A) - Completeness (C) - Validity (V) Audit Procedures Through interviews obtain understanding of the process applied in accounting for VAT. Ensure the following: 1. Clear guidance is available to all relevant staff processing accounts payable. 2. VAT returns have been completed and submitted timely. 3. Regular independent checking and reconciliation of tax summaries and tax analyses back to total tax values processed through source systems. 4. Review the reconciliation performed when accounting for the input and output VAT. 5. Obtain a download from JDE and verify the following: 5.1. Sales order processing system automatically generates correct tax values by reference to the particular customer or type of goods or service. 5.2. VAT correctly calculated based on the rate applicable. 6. Select a sample of accounts payable and verify the ff: 6.1. Payment was based on an original invoice clearly marked ‘Invoice’. 6.2. The supplier is registered for VAT i.e. VAT Registration Number on the invoice. 6.3. The goods/services qualify as taxable supply. 6.4. VAT is correctly calculated. 6.5. Invoices supporting expenditure all checked to ensure that they are in a valid format and that company is reclaiming input tax. 7. Computer system validates mathematical integrity of VAT numbers. 8. Download the customer master file and investigate whether