OTHER INCOME AND EXPENDITURE ACCOUNT ITEMS
Other income refers to income derived from activities not in the normal course
of business of an entity; sometimes called other revenue. Examples are interest
on customers’ notes, dividends and interest from investments, profit from the
disposal of assets other than inventory, gain on foreign exchange, and
miscellaneous rent income.
Substantive procedures to verify other income may include the following:
(a) Obtain schedule of classes of other income;
(b) Verify the sources of the income;
(c) Verify that the income is properly lodged in the bank and classified;
(d) Verify that the entity has right to the receipt of the income;
(e) Check posting to the General Ledger; and
(f) Verify that the income is properly disclosed in the financial statement.
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