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
Part A: What are the five inter-related components of internal control? Briefly discuss them. Part B: A file maintained by the Accounts Department for one of Sharp's s

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

Research and Development - Audit Process The past of business is littered along with cases of companies which have collapsed as a convulsion of over indulgence in discover and

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

problems associated with intangible asset audit

advantage and disadvantage of joint auditor?

RELEVANCE OF IAS / IFRS TO AUDITING The auditors should involve in their report that their view on whether the financial statements they report are true and fair view. It is comm

History - True and Fair International Standards on Auditing (ISAs) make it quite clear that the terms 'true and fair' and 'present fairly' which are used in audit reports in m


Your firm has recently been appointed auditors of the Social Transport Corporation and you are commencing the audit of the wages system. The Corporation has about 2500 employee