State the evidence, which you, as the auditor, would like to find in place and pay attention to when vouching the following payments made by RR Paper Mills Ltd., during the financial year ended 31 October 2002. Fire insurance premiums amounting to Sh. 10, 000 paid for the office block

Fire premiums

 

  •  Examine policy documents issued by the insurance company to make sure that the policy relates to the office block.
  • Verify the receipt issued by the insurance company to ascertain that the amount paid was indeed sh.10, 000.00
  • Ensure that the policy covers the office block against fire adequately i.e. it has not been over or under insured.
  • Verify that amount paid in current year compares favourably with the previous years.



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