Auditor''s duties - audit of current assets, Auditing

Auditor's Duties - Audit of Current Assets

The auditor's duties can be summarized as follows:

a) The accounting ascertaining policies adopted through the entity for pricing stocks;

b) Such as the guiding standard on stocks is IAS 2 inventories, so the auditor has to seem the appropriateness of the policies choose through the organization.  You should notice that corresponding to IAS 2:

  1. The lower of cost and total realizable price is obligatory.  A FIFO or weighted average price is used to assign prices.
  2. The cost would where suitable conclude a proportion of manufacture overheads where or not they vary on a time basis.  The proportion concluded should be based upon the general level of activity.
  3. Whether identical models are purchased or made at different periods and hence have differing costs the technique of arriving at cost must be FIFO, weighted average

c) The auditor should test verify the stock sheets or the continuous stock records along with relevant documents that as costing and invoices records to check whether cost has been correctly arrived for.

d) The auditor must analysis and tests the treatment of overheads.

e) The auditor should test the examination and treatment the offered able evidence for models valued at total realizable price.

f) The auditor should check the arithmetical accuracy of the estimates made.

g) The auditor should check and confirm the consistency along with such the amounts have to be computed.

h) The auditor must seem the adequacy of the description utilized in the accounts and the accounting policies adopter's discolors.

Posted Date: 1/25/2013 2:59:22 AM | Location : United States







Related Discussions:- Auditor''s duties - audit of current assets, Assignment Help, Ask Question on Auditor''s duties - audit of current assets, Get Answer, Expert's Help, Auditor''s duties - audit of current assets Discussions

Write discussion on Auditor''s duties - audit of current assets
Your posts are moderated
Related Questions
example of it security policies in Hardware


What are the engagement procedures of auditing

assume that auditors lost a civil lawsuit for damages and the court found total losses of $5 million. if the auditors were determined to be 30 percent at fault and were the only so

a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.

Q. What are the different methods available for collection and analyzing audit data? Q. Describe and explain common audit findings in the fields of: a. Informed consent proce

Provision and Accruals Previous to we consider the audit procedures along with regard to accruals and provisions, it is essential to clarify the meaning of two words in genera

IAS 37 Provisions, Contingent Assets and Contingent Liabilities IAS 37 was mattered in order to deal along with the subjective area of provision and to prevent the requiremen

Banks under Companies Act Banks are incorporated under the Companies Act like any other business but are granted special privileges under the same Companies Act and subjected t

Furniture, Fixtures and Disposal of Non-Current Assets Furniture, fixtures and fittings The only matter here to note is the depreciation of fittings and fixtures.  Since