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
example of it security policies in Hardware


Audit Risk and Business Risk We saw in earlier studies that audit risk is often categorized as the product of inherent risk, control risk and detection risk. Auditors should


Benefits of Internal Audit are following: It is in-expensive. No charted accounted is needed to audit internally. Faults will be removed before preparing financial stateme

You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Please assist me with this internet research, Search the internet (e.g. a company's website or sec.gov and find an audit report for a company's audit of internal control over fi

In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. T

Higher  normal risk Several audit assignments involve high audit risk and usually in any client there will always be at least one high risk area.  Indications that an audit has

An audit helps stay track of where the currency or money is going and makes sure the money is going anywhere it is believed to and not in someone''s pocket. An audit may also help