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
Business Risk Analysis Business risk can be analyzed between external and internal risks: External risks: Changing legislation (e.g. minimum wage) Changing inter

Q. Explain the Single Audit Act? Single Audit Act - Single Audit Act of 1984 and Single Audit Act Amendments of 1996 establish requirements for audits of states, non-profit org

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

advantage and disadvantage of joint auditor?

should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge

What fundamental accounting concepts must you keep in mind in preparing to carry out your audit? Accounting Concept and Records Fundamental Accounting concepts are cove

only needs to be 2 - 3 pages and I need help with an audit plan is to look like

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

What is an external auditor's responsibility in regard to finding fraud?

Authoritative Document is IAS 17 Leases The suitable technique of amortization or depreciation to require in the case of leasehold property and freehold buildings is straight-