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







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