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. Salesmen‘s commissions amounting to Sh. 3, 000, 000

  • Salesman‟s commissions amounting to Sh.3,000,000

Seek evidence that the salesmen are authorized to sell the company‘s products.
Their names should appear in the records for salesmen.

  • Verify the terms of payment of commission. There should be a clearly laid down policy for the payment of commissions.
  • Ensure that commissions are only paid against proof of sale.
  • Ensure that commission paid is subjected to taxes as required by the law.



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