Archive about 'External Audit'

What Is Analytical Review And Its Purpose In Audit

Tweet Append below are some notes pertaining to understand what is analytical review and its purposes in audit: Analytical Review In An Audit Analytical Review includes the studying of significant ratios and trends and the investigation of any unusual fluctuation and items whether in the Income Statement or Balance Sheet . The extent of reliance […]

What Can Be The Common Aims/Objectives Of The Internal And External Auditors

Tweet The following factors or circumstances where the external auditor can rely on the work of the internal auditor: The professional qualifications of the internal auditor both on competency and ethical grounds The adequacy of planning, control and documentation in the internal audit department The responsibility of the internal audit department, whether it be to […]

The Purposes And Content Of Bank Confirmation Letter In An Audit Work

Tweet Append below the Purposes and Content Of Bank Confirmation Letter: Purposes Of A Bank Confirmation Letter To obtain confirmation of all bank balances of the company at year end To ascertain any interest or charges to be accrued at the year end To ascertain the existence of any assets held by the bank on […]

Audit Procedures:The Different Methods To Record Client’s System In An Audit Work

Tweet The following methods may be used to record the client’s system: 1. Narrative system notes· A simple convenient way of recording a system · The quickest approach in a small unsophisticated system · Disadvantages are (a) cumbersome in a large system (b) difficult to interpret and review (c) difficult to alter if the system […]

Audit Procedures/Work On The Verification Of Capital Commitments

Tweet The audit procedures are as follows: Capital Commitments: 1. Review the company’s capital expenditure budgets noting expenditure which has not yet being incurred 2. Review the board minutes for expenditure authorized by the directors but not yet contracted for 3. Check correspondence and order documents for expenditure contracted for but not yet provided in […]

Audit Procedures/Work To Verify Quoted Investments And Income From Quoted Investments

Tweet The audit procedures are as follows: QUOTED INVESTMENTS: 1. Check authorization for the purchase of the investments e.g. review of appropriate board minute 2. Vouch the purchase to brokers contract note, and share certificate to the cash book payment 3. Examine the share certificate to ensure that the type of security and number of […]

Definition or What is Surprise Check or Test Check

Tweet In audit work/procedures, there is the term called Surprise check. Surprise Check is also known as Test Check. The advantage and features of Surprise Check are as follows: Advantages of Surprise Check · Able to reduce the auditor routine work so that he can devote his time to more important aspects. Features Of Surprise […]

Internal Check As Part Of Internal Control System And Features/Framework Of An Effective Internal Check System

Tweet Internal Check The check on day to day transactions which operates continuously as part of the routine system whereby the work of one person is proved independently or complementary to the work of another. Is a part of the overall internal control system The check and balance in the staff organization and job allocation […]

Audit Verification Of Other Debtors-Staff Loan

Tweet 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 […]

Definition Of Continuous Audit

Tweet This article deals with what’s continuous audit, the situation requiring continuous audit and drawback of performing continuous audit: Continuous Audit: Is one in which the auditors are engaged throughout the year or at a frequent intervals in the checking of the accounts of the clients. Situations where continuous audits are preferred: Management able to […]