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
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

Blowing the Whistle on Former Partners On St. Patrick's Day in 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, a

History - True and Fair International Standards on Auditing (ISAs) make it quite clear that the terms 'true and fair' and 'present fairly' which are used in audit reports in m

Key Audit Areas Key audit areas in detail (a) Ascertainment of creditors and debtors:   Insurance companies do not keep their personal ledgers in such a way as to prod

only needs to be 2 - 3 pages and I need help with an audit plan is to look like

internal control procedures to be put in place when purchasing a motor vehicle

As a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Local Corporation (TLC). In addition, the p

Valuation - Detailed Audit of Stock IAS 2 prescribes such stock be priced at the lower of price and net realizable price, It is up to the auditor to ensure that net realizable

challenges facing sasini company"s audited statements

With reference to the case study business, identify appropriate audit tests to be carried out. Prepare a statement of the work to be carried out and the manner in which it will be