Audit Verification Of Other Debtors-Staff Loan
July 2nd, 2009
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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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