Measures An Auditor Should Adopt to Check On The Tele-Communication System Of A Business
In the present era, the communication source like telephone and postal service plays an important role in our everyday life. Hence, an Auditor should implement effective measures to check on them to see if the business contacts are healthy and no false plays occur in between.
While considering the case of the telephone connections
- The Internal Control Manual should be thoroughly considered
- To extract the detailed list of all the telephone connections made in the name of the venture and it is also essential to have a knowledge on the different nature of voice calling systems too. For example, the landline, the mobile phones or via wireless landline type.
- Moreover, inspect the use of the telephone by the staff members of the company, mostly in the case of STD or ISD calls.
- Carefully deal with the monthly phone bills and statements delivered to the company from the telephone exchanges. Further,
- Examine if the invoices are addressed in the original name of the organization itself.
- Strictly note if the bills come under the time duration of the auditing session.
- Analyze the standard ledger scheme to know if all the bills produced for a year are effectively considered.
- Verify the deposit transaction made.
- An auditor should make sure if monthly payments are made to the corresponding telephone department and if the firm has recorded each payment in their books of record.
- And if in case, there exists a telephone expenditure of a particular branch, the verify the details with the respective documents and ensure if they are correctly accounted.
- Trace all the cash vouchers.
- Track the bank notices and tag it if any time lag is observed between the due bill issued by the financial firm, the date which the company chooses to make the bill payment and also the date listed in the debit of cheque specified in the bank passbook.
- Moreover, see if any amount is pending or any adjustments have to be made against the credits of the earlier bills issued by the telephone department.
- If any new telephone instrument or their corresponding cables have been purchased from the office, then all those purchases have also to be included in the total telephone expense account and the auditor should make note of this.
- It is also essential to verify if any personal expense element of company officials is added to the organization’s profit and loss business account.