Useful points while conducting audit of purchases

a.Content of Invoice are reconciling with Entry (including narration).
 
b.Whether date, bill no., suppliers name, invoice value, VAT/CST, P.O. no. (if any), Form-38 no. (In case of purchase from outside noida/ to noida), etc as per Invoice and purchase register same & matching.
 
c. Check whether particulars of invoice, challan & purchase order reconciling (wherever necessary).
 
d.Check arithmetic accuracy on test basis, particularly in case where calculation done manually in invoice.
 
e. Check TIN no. of company and supplier mentioned in purchase invoice (except when purchase made from URD).
 
f.   Ensure in case of local purchase, VAT paid is transferred to Input VAT account i.e. input of vat paid is taken (except in case of non-creditable goods or when input can’t be claimed). Also check Company has obtained TAX Invoice for this purpose.
 
g.Ensure gate entry stamped is affixed on Delivery Challan or Purchase Invoice.
 
h.Purchase Invoice, Delivery Challan to contain reference to purchase order.
 
i.   Ensure that in place of tempering the invoice amount owing to any cause, DEBIT NOTE is issued to supplier and duplicate thereof is kept in records along with original CREDIT NOTE received from supplier.