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 the … Read more
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 changes … Read more
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 the … Read more
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 shares … Read more
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 Check … Read more
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 aspects … Read more
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 … Read more
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 exercise … Read more
Append below explain what’s Operational Audit and Its Objectives: Operational Audit: Operational audit is a systematic independent appraisal activity within an organization for the review of the entire department operations at the request of the management Is an extension of the traditional internal audit. Traditional audit looks only at accounting and financial operations but operational … Read more
Below article explains what is Environment Audit: Environment Audit: Deals with the verification of information contained in the Environment reports which includes disclosure by an entity of environmental related data pertaining to environment risks, environment impacts, policies, strategies, targets, costs, liabilities or environment performance to those who have an interest in such information This type … Read more