Prepare schedule of contractor's monthly reports of gross receipts and MTA fees computed thereon. Compare to prior periods - note trends. Obtain blank copies of forms used. Compare to MTA records. Test footings and cross footings.
Trace reports to billing reports - note differences.
Trace billing reports to the general ledger. Rate Verification a. Select a sample of advertising contracts on a random basis, which were in effect during the audit period. Review of Misc. Gross Receipts a. Select a sample on a random basis of contracts in effect during audit period, which were categorized as miscellaneous income. Determine the purpose and source of miscellaneous income.