audit tests and recording items in the audit, Auditing

Assignment Help:

With reference to the case study business, identify appropriate audit tests to be carried out. Prepare a statement of the work to be carried out and the manner in which it will be recorded for the audit report.

 Audit Test

Referring to the case study auditor can use, apply management ascertain act of all plan audit and far each audit engagement team member prepare an audit programe and identifies objectives he want to achieve, e.g.

Audit plan is prepared to verify assets

First assertion is tested through physical control whether asset is valued properly valuation at cost or fair value, if at cost revalued or not, asset is physically is existing or not is 2nd assertions tested through personal observation , inspection: inspection is risk assessment procedures used to apply to check management assertion of existence, presentation: disclosure is also relevant whether transactions are properly recorded , classified in ledgers and reported in statement, walk through test is used to check the another ascertain completeness.

All these assertions are related to this case study, as asset is recorded as an expense, not properly classified so test is used to check this assertion, transactions for sale purchase, inventory and other weak through test is used and analytical procedures to check completeness assertion.

Measurement is also checked by checking estimates and companies polices by verifying asset management assertion of rights and obligation could also be judged that whether asset is purchased on cash or it is a leased asset

Any right obligations allotted to it then go to transfer deed or lease agreement so all these tests are used to test to justify the reliability of the financial statements


Related Discussions:- audit tests and recording items in the audit

Historic costs methods - long term contracts, Historic Costs Methods - Long...

Historic Costs Methods - Long Term Contracts You will notice such this exercise is completely dependent on the company estimating its further costs.  This is wherever the audi

Role of accountant, Role of Accountant The Accountant's Role Every ...

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Why audit of procurement is considered important, The Department of Higher ...

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

Internal control, Ask question #MA. Evaluate the strengths and weaknesses o...

Ask question #MA. Evaluate the strengths and weaknesses of preview Company''s control environment B. What factors in Preview company''s control environment have led to and facilit

Assignment, what is the effect of fraud and error on the financial statemen...

what is the effect of fraud and error on the financial statement.please I want simple answer

Accounting requirements - ias 40 investment properties, Accounting Requirem...

Accounting Requirements - IAS 40 Investment Properties IAS 40 prescribes the accounting treatment about investment property and related disclosure necessities.  Investment

Amounts derived from financial statements, Amounts Derived From Financial S...

Amounts Derived From Financial Statements Please note here the auditor is interested in preceding year's evidence since 1. The Companies Act states such corresponding amounts

General verification procedures - audit process, General Verification Proce...

General Verification Procedures - Audit Process 1. Get or prepare a schedule for each and every class of liability. Usually this would indicate the makeup of the liability a

Basic elements of a management representation letter, Basic Elements of a M...

Basic Elements of a Management Representation Letter Whenever requesting a management representation letter, such the auditor would request which it be addressed to the audi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd