Audit Verification Of Other Debtors-Staff Loan

July 2nd, 2009 Comments off
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Append below the audit steps on Staff Loan

Other Debtors-Staff Loan Obtain a schedule of loans/advances to employees, including directors and test as follows:

· Test authority for loans granted during the year

· Check interest calculations and trace postings to nominal ledger

· Test amounts repaid with cash book or salary records as appropriate

· Verify that the terms of repayment and interest are being complied with

· Inspect certificates from the borers confirming the balances at the year-end

· Confirm adequacy of security

· Confirm collectability of outstanding balances

· Examine board minutes confirming substantial loans

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