State about walk-through tests - auditor, Financial Management

Walk-through tests - Auditor

• "Walk-through tests" -That is tracing one or more transactions by accounting system and observing application of internal controls.

Review of prior year file and previous experience of reliability of system.
Review of procedures manuals and systems descriptions.
Enquiry of management and personnel.
Examine documents / records produced by systems.
Observation of the activities and operations, including IT function and the nature of transaction processing.

Related Discussions:- State about walk-through tests - auditor

Net present value, What is Net Present Value? Describe please.

What is Net Present Value? Describe please.

Explain the pricing spill over effect, Explain the pricing spill-over effec...

Explain the pricing spill-over effect. Suppose a firm operating in a segmented capital market (such as China, for example) decides to cross-list its stock in New York or London.

Explain contingent exposure, Explain contingent exposure and define the adv...

Explain contingent exposure and define the advantages of using currency options to manage this type of currency exposure. Answer: Companies may come across a state where they m

Define the first aspect of capital budgeting decision, Define the first asp...

Define the first aspect of capital budgeting decision The first aspect of capital budgeting decision relates to the choice of new asset out of the alternatives available or rea

Duration and convexity of mortgage backed security, Duration an...

Duration and Convexity of MBS A graph decpicting the price of the security under study and the interest rates helps in assessing the duratio

Credit spread risk, A credit spread refers to the difference in inter...

A credit spread refers to the difference in interest rate between a corporate bond and a comparable maturity government bond. Suppose interest rate on a five-year

Bonds with warrants, Bonds with Warrants: Warrants are usually attached...

Bonds with Warrants: Warrants are usually attached with the bonds or preference shares to attract the investor. The objective is to induce the potential investors to subscribe

Interpretations of activity ratio''s, Activity Ratio's RT: ...

Activity Ratio's RT: The Receivables Turnover ratio is the ratio between sales to accounts receivables. This says exactly how fast a company can collect on the s

Question, You deposit $500 today in a savings account that pays 3.5% intere...

You deposit $500 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years?

Determining the appropriate rates in valuation process, After estimat...

After estimating the cash flows, the next step is to determine the appropriate interest rate that should be used to discount the cash flows. The minimum return re

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages