Explain audit-financial records, Auditing

Assignment Help:

What is an audit, what financial records are available and what is their individual function in completing your audit?

Audit is an independent examination of financial information of an entity, whether profit oriented or not and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion there on.

Financial records

Record is kept by the management of their operations, their possessions, these records are vouched and verified by using supporting documents to search for evidence upon which team members draw conclusions provide a basis of audit report which is the ultimate opinion/ conclusion of the audit process.

Cash receipts/ cash book verification

Documents/ records maintained are

Cash memos

Sales statement

Cash collection totals/ reconciliations

Cancelled memos

Trade discounts

Vouching of interest income

Investment ledger and interest accounts are supporting records to be verified.

Dividend income

Dividend warrants

 Minutes of meeting referring to dividend declared

Rent income  

Rent register

Lease agreement

Rent receipts

Arrears

Property tax returns

Bill receivable  

Bills for collection

Bills discounted

Cash book

Insurance claim

Insurance policies

Claims filed

Money collected

Claims due

Sale of assets

Sales contract

Termination of insurance policy

Creditors 

Purchase ledger

Invoices

Cash receipts

Statement of sales

Purchase order

Vendors list

Agreements

Vouchers

Wages

Internal control

Proper authority

Employee record

Hourly rate sheet

Cheques drawn 

Overtime wage sheet

Revenue stamp

Wages register

Verification of assets

Assets schedule

Verify cost

Asset register

Physical inspection record

Title deeds

Insurance policy

Representation letters

All these are supporting records that provide audit evidences regarding material mis-statements existing or not role of these documents are that these are evidences but auditor has to verify each and every information that is received from management to get it confirmed from one or two alternative sources to collect reliable audit evidences upon which auditor is able to give reasonable assurance that financial statements are presenting true and fair view. That's why external confirmation is becoming a norm of the business in certain cases e.g. confirmation from banker etc.


Related Discussions:- Explain audit-financial records

Audit of group accounts, Audit of Group Accounts The main problems can...

Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern

Reliability - sources of evidence, Reliability - Sources of evidence R...

Reliability - Sources of evidence Reliability of audit evidence is influenced through its nature and its source and since it is dependent upon the specific circumstances, we c

Audit process, Following three frameworks/ concepts are an integral part of...

Following three frameworks/ concepts are an integral part of the ‘world of auditing' which may be used by auditors throughout their audit engagements. (i) Overview of the audit

Negligence in general, Negligence in General There is no case against a...

Negligence in General There is no case against auditors and this made it hard to be accurate as to where the auditor’s legal liability falls.  We require therefore referring to

Fraudulent financial reporting, Fraudulent financial reporting Involves...

Fraudulent financial reporting Involves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial statement users. Fraudulent f

Prepayments - audit process, Prepayments - Audit Process Prepayments s...

Prepayments - Audit Process Prepayments similar to accruals are not mostly checked through the double entry system. This creates them susceptible to mistake. The auditor's pro

What type of sampling plan should the auditors use for test?, In performing...

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

Classification of individual business risk, Classification of Individual Bu...

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

What is transferred basis, Q. What is Transferred Basis? Transferred Ba...

Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'

Please assist me with this internet research, Please assist me with this in...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd