Verification work - audit process, Auditing

Verification Work - Audit Process

At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of materials, job and overhead costs to supporting documentation, etc; the more sensitive audit subject are disclosure, measurement and recognition of benefits and revenues and valuation issues.

  1. Contract revenue should be well known in the accounting time whether the work is performed
  2. Contract costs should be well known against the revenue to that they relate
  3. Expected excesses of entire contract cost should be known immediately
  4. Costs that relate to future activity contract work in progress should be carried forward as an asset as given they are recoverable
  5. Irrecoverable amounts receivable from well known contract revenue should be well known as an expense.

Long-term contracts are those for that the calculated lives are longer rather than one accounting time.  Periodic accounts artificially break down the life of company into particular time and the need for the corresponding concepts to be followed makes it essential to ascribe a proportion of the benefits on a contract for all of the accounting episodes such it covers.  This is in conflict along with the prudence concept such would need that costs be accumulated till the completion of the contract, or can be reasonably foreseen via estimates to complete.  Usually, when there is conflict among the matching concept and prudence concept the prudence concept prevails.

Posted Date: 1/28/2013 12:06:51 AM | Location : United States







Related Discussions:- Verification work - audit process, Assignment Help, Ask Question on Verification work - audit process, Get Answer, Expert's Help, Verification work - audit process Discussions

Write discussion on Verification work - audit process
Your posts are moderated
Related Questions
Auditor's Duties - Audit of Current Assets The auditor's duties can be summarized as follows: a) The accounting ascertaining policies adopted through the entity for pri

Questionable Payments In some countries, business is often gained by bribing ministers or public officials or officers of companies or firms with whom one wishes to do business

Audit Procedures -Research and Development The auditor should ensure that: a) Any costs incurred in the buy of fixed assets in order to give facilities for development and

Auditors Procedures After Stock Taking It is particularly a follow up exercise and it includes: 1) Checking the cut off along with the details of last numbers of stock move

Advantage and Disadvantage of Judgmental Sampling The advantages of judgment sampling The approach is understood as well and has been refined through experience o

Checking consolidation papers The auditor pays particular attention to the calculation of: Goodwill arising on acquisition and consolidation Pre-acquisition and post-

Verification of Liabilities - Audit Process Usually speaking, the auditor's duty along with regard to liabilities can be summarised follows as: 1. To confirm the existence of

Factors Affecting and Controlling Occupational Health (i) Walking-Working Surface Workers must work or move on different surfaces while working. Such - surfaces are cha

Step 1: Determine learning objectives. Considering the importance of a course, its placement in a program of study, and its role in providing a base of knowledge to be built upon

how to calculate materiality given the acoountin period information