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Checking Consolidation Papers
The auditor pays particular concentration to the calculation of:
a) Goodwill arising on consolidation and acquisition
b) Post-acquisition and pre-acquisition profits
c) Minority interest
d) Treatment of intercompany profits in stocks
e) Agreements of intercompany indebtedness
f) Essential cancellations in respect of intercompany cash in transit
g) Turnover, not including group trading
h) Essential adjustments in respect of group companies along with different accounting period end
i) Taxation
The consolidated accounts must comply along with all relevant accounting and legal needs.
Why is studying Auditing different from studying other accounting topics?
Communication with Expert Whether the auditor intends to utilize the work of an expert then he must communicate along with the expert well in advance to confirm the terms of e
problems associated with intangible asset audit
Ask Describe the weaknesses in internal control and recommend improvements in Swan’s procedures for the purchase, receipt, storage and issue of raw materials. Organize your answer
ILLEGAL ACTS Auditors may uncover criminal offences committed by a client or an employee of the client. This puts them in a difficult place, though the auditor must act careful
Q. Explain the Single Audit Act? Single Audit Act - Single Audit Act of 1984 and Single Audit Act Amendments of 1996 establish requirements for audits of states, non-profit org
should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge
Determinants of amount of audit evidence
Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c
Deposits and Share - Building Society Shares may make of subscription shares and paid up shares. Interest on shares might be credited to ensure specific control to the account
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