Valuation and allocation - audit process, Auditing

Valuation and Allocation - Audit Process

As we saw assets are usually valued at cost or a valuation less a provision for usage or loss of value.  We have to ensure therefore that the accounting policy adopted in determining the amount of provision to be written off in any one year is in accordance with the relevant IAS or generally accepted accounting principles or Companies Acts requirements.  The IAS often allows several accounting policies in a given set of circumstances.  Hence the question can often arise as to where the specific accounting policy chosen is suitable.  Frequently it falls on the auditor to decide on this suitability.  He has to realize the common practice in the industry, the requirements of the fair and true view and the previous practice in the company. Although the requirements of suitability will override for the IAS itself.  A policy required for valuation apart from to be suitable and acceptable, must be consistently applied within the entity, within the industry and from period to period and should be in accordance along with IAS.

However Liabilities as we said are mostly valued at cost, whether they include estimation or they are provisions for particular liabilities then they must be in accordance along with clearly stated accounting policies also. Each values should be determined on not replacement cost and a historical cost basis.

Posted Date: 1/25/2013 1:38:33 AM | Location : United States







Related Discussions:- Valuation and allocation - audit process, Assignment Help, Ask Question on Valuation and allocation - audit process, Get Answer, Expert's Help, Valuation and allocation - audit process Discussions

Write discussion on Valuation and allocation - audit process
Your posts are moderated
Related Questions
I need a 5 schedules like the sample on the attachment please follow the Instructions you will see in the instructions attachments 4 companies and you have to choose 5th one by yo

audit procedures in business combination conserning Goodwill


Problem: You are an auditor of a company which operates three large departmental stores at Grand Bay, Port Louis and Tamarin. You are preparing your audit plan and you are p

Liability to third parties For long time liability to third parties existed only in respect to physical damage. Liability for financial loss is a current development.  Illustra

Ask question #Mini mum 100 words acMr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is ver

Internal Control Procedures: As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store. For each of the followin

Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The

postage stamps 220 currency and coins 1156.60 how much petty cash fund shall be shown as part of cash balance

The Tonka Manufacturing Company conducts its annual physical inventory at the end of the calendar year as a result of the auditor's assessment of non-operating internal controls in