Principles of auditors procedures, Auditing

Principles of Auditors Procedures

i. The financial statements should be prepared on the source of conditions existing on the balance sheet date.

ii. The material post balance sheet event needs changes in the amounts to be involved in the financial statements whereas:

  1. This is an adjusting event or
  2. This indicates such application of the going to relate assumption to entire or a material part of the company is not suitable.


iii. The material post balance sheet event should be disclosed whereas:

  1. This is a non-adjusting event of which materiality and its non disclosure would affect the capability of the users of financial statements to reach a appropriate understanding of the financial position and
  2. This is the maturity and reversal after the year finish of a transaction entered into before the year finish, the substance of that is primarily to change the appearance of the company's balance sheet.


iv. So in respect of each post balance sheet event that is utilized to be disclosed under paragraph (iii) above, the subsequent information should be stated through way of notice in the financial statement:

  1. The behaviour of the event and
  2. The estimate of the financial effect or a statement such is not practicable to make that as estimate.

v. Such estimate of the financial effect should be disclosed before taking account of taxation and the taxation implication should be described where essential for a appropriate understanding of the financial position.

vi. The date on that financial statement is approved through the board of directors should be disclosed in financial statements.

Posted Date: 1/28/2013 2:21:20 AM | Location : United States







Related Discussions:- Principles of auditors procedures, Assignment Help, Ask Question on Principles of auditors procedures, Get Answer, Expert's Help, Principles of auditors procedures Discussions

Write discussion on Principles of auditors procedures
Your posts are moderated
Related Questions
Necessity of Accountant The accountant is not necessary To expand his enquiries beyond the information enclosed in the relevant documents as supplemented through such e

Internal Audit has been asked by the State to review the activities of The Commission on Workforce Development

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

Develop a list of tasks the auditor should perform in planning this audit engagement, before any audit testing begins. Handbook section CAS 315 lists management assertions embod

Existence - Audit Process In the case of tangible assets existence is confirmed through the auditor visually, considering the asset examining and concerned its condition.  Thi

Verification Work - Audit Process At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of

AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion

Valuation of Debtors Debtors are valued simple like other assets at the lower of cost and total realisable value. Valuation of debtors is actually a consideration of where the

Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in

Principles of Auditors Procedures i. The financial statements should be prepared on the source of conditions existing on the balance sheet date. ii. The material post balance