What ad hoc checks should auditors in India do?

Auditors are required to check that any payment in cash or aggregate payments in cash totaling over INR 200,000 in one day are not claimed as a deduction (in accordance with Section 40A(3) of the Income Tax Act 1961), and also check other credit balances in cash. A company’s Bank Reconciliation Statement should also be spot-checked by an auditor to verify expenditures.