Process to adopt liabilities, Auditing

Process to Adopt Liabilities

It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they exist. The process to adopt includes:

1) Enquiry of other knowledgeable officers and the directors;

2) Representation in an appropriate letter of representation from the directors;

3) Minutes of meetings where such the existence of unrecorded liabilities may be mention;

4) Post-balance sheet events review including the inspection of purchase invoices and payments after date.

5) Reviewing last year's working papers to verify whether any liabilities existing after then have been excluded.

6) Being constantly attentive to the possibility of that a liability. For example, where such the client sells goods matter to warranty time this would attentive the auditor at once of outstanding commitments.

Posted Date: 1/28/2013 12:47:37 AM | Location : United States







Related Discussions:- Process to adopt liabilities, Assignment Help, Ask Question on Process to adopt liabilities, Get Answer, Expert's Help, Process to adopt liabilities Discussions

Write discussion on Process to adopt liabilities
Your posts are moderated
Related Questions
Completeness of Liabilities In distortion, the directors tend to involve non-existent assets or keep out liabilities. Hence whereas along with assets we are especially concern

Planning for Stock taking Stock taking should be planned well in carried out and advance carefully and systematically through persons fully informed of the duties involved. Th

list four assertions that relate to account balances

Cost and Authorization - Detailed audit of stock Cost A favor of the auditor this is restricted generally to determining the technique adopted through the organization

State four factors considered determining sufficiency of audit evidence

Discontinued Operations - Audit of Accounting Estimates A discontinued operation is a component of an entity that either has been disposed of or is held for sale. So it might

assume that auditors lost a civil lawsuit for damages and the court found total losses of $5 million. if the auditors were determined to be 30 percent at fault and were the only so

Auditor Further point to note is which modern companies can be exclusively large along with multi-national activities.  So preparing accounts for that a group becomes a widely

Summary of IAS 2 Inventories are measured at the lower of cost and net realizable value. Entire realizable price is the calculated selling price in the regular course of busin