Selection of a sample - audit process, Auditing

Selection of a Sample - Audit Process

The following accounts must be involved in debtor's circularisation:

1) Large balances since they are large and the moreover you can substantiate of the debtors figure, the more assured you are.

2) All unpaid accounts since there may be fictitious balances designed to conceal defalcations or there may be a specific dispute both of that can reason overstatement.

3) Accounts along with round sum payments: this may show lading and teeming or such the debtor cannot pay the full amount.

4 ) Accounts along with NIL balances: this is since of active debtors by the year may be used to conceal window dressing methods.

5) Credit balances: therefore a sales system should produce debit balances, if it Create credit balances; they require to be investigated to ensure about such they were properly set up. The client may be reluctant to permit you to advise his customers of credit balances in case they have been overlooked and the customer now enquires for payment. We resolve that objections through omitting the balance figure from the circular.

6) Accounts wherever credits or discounts seem excessive or where credit durations are continuously exceeded without follow up.

7) Other accounts which must be considered for circularisation are: accounts not composed of specific items, small balances which are usually large, accounts along with related parties and accounts that the auditor feels put him upon query.

Posted Date: 1/28/2013 12:25:35 AM | Location : United States







Related Discussions:- Selection of a sample - audit process, Assignment Help, Ask Question on Selection of a sample - audit process, Get Answer, Expert's Help, Selection of a sample - audit process Discussions

Write discussion on Selection of a sample - audit process
Your posts are moderated
Related Questions
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

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

a. Discover Fifty strengths and Fifty weaknesses after conducting an internal audit of a company. b. What procedures could then be used to determine the most important of these?

What are the engagement procedures of auditing

Action if Management Refuses to provide Representations Whether management rejects to provide a representation which the auditor considers compulsory, this constitutes a scope

Presentation and Disclosure - Audit Process Specific presentation involves presentation in accordance along with the suitable IFRS/IAS or International Accounting Standards.

Research and development Panorama Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected audited data for the reporting period ended 31 Dec

(a) State the FIVE threats contained within Auditor's Code of Ethics and Conduct and for each threat list ONE example of a circumstance that may create the threat. (b) You a

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

Problem : As per the Field Standard (INTOSAI), competent, relevant and reasonable evidence should be obtained to support the auditor judgement and conclusions regarding the org