Explain audit-financial records, Auditing

What is an audit, what financial records are available and what is their individual function in completing your audit?

Audit is an independent examination of financial information of an entity, whether profit oriented or not and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion there on.

Financial records

Record is kept by the management of their operations, their possessions, these records are vouched and verified by using supporting documents to search for evidence upon which team members draw conclusions provide a basis of audit report which is the ultimate opinion/ conclusion of the audit process.

Cash receipts/ cash book verification

Documents/ records maintained are

Cash memos

Sales statement

Cash collection totals/ reconciliations

Cancelled memos

Trade discounts

Vouching of interest income

Investment ledger and interest accounts are supporting records to be verified.

Dividend income

Dividend warrants

 Minutes of meeting referring to dividend declared

Rent income  

Rent register

Lease agreement

Rent receipts

Arrears

Property tax returns

Bill receivable  

Bills for collection

Bills discounted

Cash book

Insurance claim

Insurance policies

Claims filed

Money collected

Claims due

Sale of assets

Sales contract

Termination of insurance policy

Creditors 

Purchase ledger

Invoices

Cash receipts

Statement of sales

Purchase order

Vendors list

Agreements

Vouchers

Wages

Internal control

Proper authority

Employee record

Hourly rate sheet

Cheques drawn 

Overtime wage sheet

Revenue stamp

Wages register

Verification of assets

Assets schedule

Verify cost

Asset register

Physical inspection record

Title deeds

Insurance policy

Representation letters

All these are supporting records that provide audit evidences regarding material mis-statements existing or not role of these documents are that these are evidences but auditor has to verify each and every information that is received from management to get it confirmed from one or two alternative sources to collect reliable audit evidences upon which auditor is able to give reasonable assurance that financial statements are presenting true and fair view. That's why external confirmation is becoming a norm of the business in certain cases e.g. confirmation from banker etc.

Posted Date: 3/14/2013 2:29:49 AM | Location : United States







Related Discussions:- Explain audit-financial records, Assignment Help, Ask Question on Explain audit-financial records, Get Answer, Expert's Help, Explain audit-financial records Discussions

Write discussion on Explain audit-financial records
Your posts are moderated
Related Questions
Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is very excited and has announced that th

Assessment Criteria Sheets Risk analysis report Subject Learning Outcome: To examine techniques used by auditors, including risk analysis, evidence collection and evaluation Below

Problem: "If the auditor wishes to place reliance on internal control,he should ascertain and evaluate those controls and perform compliance tests on their operation" (a) De

Valuation and Income - Verification Procedures Valuation Valuation of listed securities is easily conformed along with suitable financial publications. Directors' valua

Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

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


Providers of Funds A further point to note is that modern companies can be very large with multinational activities. Preparing accounts for such a group becomes a very complex

how do internal controls affect or improve the goals of a bussiness firm

Procedures in computing the work of the expert The auditor must obtain reasonable assurance that the expert's work constitutes appropriate audit evidence in support of the fina