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 that … Read more
ANSWER To Accounting Question No IR 2 On Incomplete Records (a) Jim’s Statement Of Affairs as at 31 st December 2006 & 2007 2006 2007 $ $ Fixed Assets Premises 25,000 25,000 Machines(W1) 20,000 18,500 Less: Depreciation 8,000 12,000 9,250 9,250 37,000 34,250 Current Assets Stock-Raw Materials 6,900 7,790 Work-in-progress 5,300 4,600 Finished goods 7,900 … Read more
Financial Accounting Test Paper (With Answer) No.IR 2 On Incomplete Records Question: Jim did not keep a Ledger. He began trading on 1 January Year 2000 with business premises costing $25,000 and machines costing $20,000. At 31st December Year 2006 and 2007 his other assets and liabilities were summarized as follows: 31/12/06 31/12/07 … Read more
David Mc Clelland Of Harvard University and his co-workers have done researches pertaining to the motivational needs of people in multi-culture and many section of the society. Mc Clelland’s Needs Theory Of Motivation Based on his researches, he advocated the need to group human motivation or needs into the following three categories: 1. The needs … Read more
Monistic theory of motivation is based upon the notion that man is essentially economic. This theory solely hinges on monetary aspect of remuneration or reward to human behavior. Individuals are assumed to be highly responsive to money reward. People feel motivated when rewarded with more money. People repeat their behavior if it leads to reward. … Read more
Append below a listing of topics covered under the heading Internal Audit. Topics On Internal Audit 1.0 Major Roles Or Functions Of An Internal Audit Department 2.0 The Factors Or Circumstances Where External Auditors Can Rely On The Internal Audit Department/Internal Auditors 3.0 Ways Or How To Gauge /Assess The Effectiveness or Reliability Of An … Read more
This article discuss the role of Forensic Accountants which might at certain point of times can have their role clashing with the internal auditors Forensic Audit/Accounting: It is a branch of accounting which focus very closely on detecting or preventing accounting fraud i.e. called Forensic Accounting. A forensic accountant is simply one which assists management … Read more
Append below are the recommendations from CIMA’s guideline re: A Framework For Internal Controls pertaining to the suggested terms of reference for an Internal Audit. Hopefully, below might be useful for those self-starters who wish to initiate terms of reference for their internal auditing role: Internal Audit’s Terms Of Reference Function 1. Internal Audit is … Read more
The contemporary trend is to outsource the internal audit department. However, there are many benefits which we have to consider accruing from having an internal audit department. Major advantages Having An Internal Audit Department It dispenses the need to employ external consultants to act as internal auditors hence saving large sum of money. This is … Read more
The following are the audit steps to audit/vouch/verify the receipts of cash proceeds: Receipts of Cash Sales Examining the system of internal checks/controls pertaining to proceeds from cash sales to ensure no loop holes pertaining on omission of cash sales and prompt banking into the bank Ascertain the practice followed in the … Read more