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.
a) Loans to three employees totaling Sh. 6 million. (4 marks)
b) The last call on 5, 000 ordinary shares at Sh, 15 per share. (4 marks)
c) Fire insurance premiums amounting to Sh. 10, 000 paid for the office block. (4
marks)
d) A loan amounting to Sh. 30 million obtained from a local bank and secured by the
factory building. (4 marks)
e) Salesmen‟s commissions amounting to Sh. 3, 000, 000. (4 marks)