What are the important points to be considered while reviewing the 'process of taking insurance during transit' ?
CS Executive · Company Accounts & Auditing Practices · PYQS · June 2016
What are the important points to be considered while reviewing the 'process of taking insurance during transit' ?
Answer & Explanation:
Check whether the process of taking insurance for transit vehicle exists or not. Check the coverage of insurance policy i.e. it covers full inventory value or just material price. Check which party among transporter or the client takes the insurance. Check whether proper insurance value is declared for insurance coverage. Check whether the insurance policy is made available to all concerned. Check whether any cost benefit analysis has been done for the insurance premium paid and claim has been made or not.
Topics: Audit Procedures
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