Outstanding expenses

PPT ON OUTSTANDING EXPENSES OF BILASPUR UNIVERSITY C G
AUDITORS DUTY IN VERIFICATION OF OUTSTANDING EXPENSES

1. OUTSTANDING EXPENSES PREPARED BY : VIPIN SINGH ROLL NO. 53

2. INTROUCTION Expenses w hich have been incurred during the year and whose befit have been derived during the year , BUT not paid for yet are called outstanding expenses.

3. At the end of the accounting year, all such expenses must be brought into the books, otherwise the profit will be overstated. It is also known as accrued expenses. Examples: o/s salary,o /s wages,o /s rent,o /s auditfee,o /s electricitybill,o /s water bill etc..

4. Auditor duty in verification of o/s expense The following points should be noted : 1.He should carefully note that all expenses ,e.g.,rent,rate, int ., wages,salary,audit fee,legal expenses, etc .,have been accounted in the books. 2.He should check entries in the books passed on the basis of invoices and demand notes for some weeks after the close of financial year to ensure that they are not related to the year under audit.

5. 3.He should compare all the paid and unpaid expenses of the current year with those of the previous year to see that there is not much difference. 4.it should be ensured that all outstanding wages and salaries have subsequently been paid.

6. THANK YOU