Building societies - specialized audit situation, Auditing

Building Societies - Specialized Audit Situation

Building Societies are organisations that exist to offer a savings and investment intermediate to the public and to lend to personalities money to enable them buy their own houses obtaining as security the deeds of the houses. Such they are not limited companies however are run through a board of directors chosen through the investors and permanent staff.  There is strong similarity in the legislation covering building societies and such covering companies.

Some of additional control problems peculiar to building societies are:

i. The large volume of withdrawals and deposits of small amounts of cash;

ii. The compromise of loans on mortgage

iii. Control over documents of title heading

iv. Control over investments and their related income

It shall be the duty of a building society of the auditors to carry out such investigations as will enable them to form the opinion as to the following matter.

(a) Where the society has kept proper books of account;

(b) Where the society has kept a satisfactory system of control over its records and transactions;

(c) Where appropriation account and revenue and the balance sheets are in agreement along with the books of account and records of the society and which the auditors are of the opinion such the society has failed to maintain proper books of account or specific records or a specific system of control they should state such fact in their report.

Posted Date: 1/28/2013 3:07:00 AM | Location : United States







Related Discussions:- Building societies - specialized audit situation, Assignment Help, Ask Question on Building societies - specialized audit situation, Get Answer, Expert's Help, Building societies - specialized audit situation Discussions

Write discussion on Building societies - specialized audit situation
Your posts are moderated
Related Questions
Factors Affecting and Controlling Occupational Health (i) Walking-Working Surface Workers must work or move on different surfaces while working. Such - surfaces are cha

Ask quesThe following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Co

An audit helps stay track of where the currency or money is going and makes sure the money is going anywhere it is believed to and not in someone''s pocket. An audit may also help

IFRS 5 Non-Current Assets IFRS 5 Non-Current Assets Held for Discontinued and Sale Operations The Discontinuing Operation is a component of an enterprise: (a)  Such the

Irregularities: Irregularities can be explained as intentional distortions of financial statements for whatever reason and also as misappropriation of possessions whether or no

two advantages of an Audit to the shaire holders

Recognize the Related Parties The auditor should review information provided through the management and directors recognize the names of all identified related parties and sho

Importance of Related Party Transactions Whenever the existence of about transactions and parties among such parties are considered ordinary features of business, the auditor

AsList and define five audit procedures for obtaining audit evidence. (ii) Why is it necessary to obtain corroborating evidence for inquiry and observation? (iii) What is the dif

Describe the factors which decide the broad area of Scientific activity?