Cash and window dressing - building society, Auditing

Cash and Window Dressing - Building Society

Cash

Possibility of misappropriation and error usually accompany the handling of cash. Building societies transactions towards a large extent are in cash. However this does not include audit considerations so that differ in principle from those encountered in any another business. Then there should be surprise cash counts and any discrepancies have to be investigated in detail.

Window Dressing

Auditors should examine transactions that have the effect of showing as on the balance sheet date a state of affairs mainly the society's liquidity such is materially better after it was while the year and shortly after. Of specific attention are:

1. Large deposits obtained shortly before the year finish and repaid shortly after;

2. Large mortgage repayments obtained shortly before the year finish and re-advanced on the same property shortly after;

3. Unusual delay until after the year finish in creating payments in accordance along with applications obtained for withdrawals of shares or deposits;

4. An abnormal year finish accumulation of commitments for advances followed through the creating of the advances shortly after the year finish;

5. The importance of items in the bank reconciliation statements.

Not just does the auditor report on the financial statements to the members, he is also supposed to provide a report to the registrar of societies to accompany the yearly return.

Posted Date: 1/28/2013 4:19:26 AM | Location : United States







Related Discussions:- Cash and window dressing - building society, Assignment Help, Ask Question on Cash and window dressing - building society, Get Answer, Expert's Help, Cash and window dressing - building society Discussions

Write discussion on Cash and window dressing - building society
Your posts are moderated
Related Questions
An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor ke

The most effective means for an AUDITOR to confirm his understanding how internal control over financial reporting is designed and operates to test and evaluate its effectiveness.

Forms of Evidence Observation , is mostly witnessing internal book-keeping procedures and system control. It involves attendance at wages pay out. Observation of stock-ta

Beneficial Ownership or Title In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to norma

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

Internal Control - Investment Whether a trading concern holds merely a few investments, there is unlikely to be any organized internal control systems particularly for those i

list four assertions that relate to account balances

Ask question #Mini mum 100 words acMr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is ver

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

Internal Control Systems ISA 400: “Internal control system” means all the policies and processes (i.e., internal controls) accepted by the management of an entity to assist in