Verification work - audit process, Auditing

Assignment Help:

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.


Related Discussions:- Verification work - audit process

Intangible asserts, Suppose soyola cooking oil company takes over ZamGold c...

Suppose soyola cooking oil company takes over ZamGold cooking oil for an amount in excess of the value $500,000. A) What intangible assert will Soya create in its books which the a

Banks, Banks The Authoritative documents are: The Central Bank of...

Banks The Authoritative documents are: The Central Bank of Kenya Act, The Companies Act Cap 486. IAS 30 Disclosure in the Financial statements of Banks and Similar

Calculate the loss suffered by the shareholders, In June 2004, Feltex Carpe...

In June 2004, Feltex Carpets Limited raised NZ $254 million in an initial public offering. Twenty seven months later the company was in receivership, its share price having collaps

Relevance - sources of evidence, Relevance - Sources of evidence The a...

Relevance - Sources of evidence The auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information contain

Presentation and disclosure - audit of accounting estimates, Presentation a...

Presentation and Disclosure - Audit of Accounting Estimates An enterprise should involve the following information relating to a discontinuing operation in its financial state

Communication on fraud suspection, Communication: Whenever the auditor...

Communication: Whenever the auditor recognizes a misstatement resultant from fraud, or a suspected fraud, or error, the auditor must consider the auditor’s duty to communicate

External financial statement, As per the standard audit engagement letter s...

As per the standard audit engagement letter signed between external financial statement auditor and client/ auditee, auditor's primary role is to detect fraud. Ans: No, the prim

Procedures when fraud is suspected, Procedures When Fraud is suspected ...

Procedures When Fraud is suspected Whenever the auditor encounters situation that might indicate that there is a material mis-statement in the financial statements resultant fr

Standard defines development and research, Standard Defines Development and...

Standard Defines Development and Research The standard defines development and research as follows: (a) Research - planned and original investigation undertaken along with

management functions and the audit, Describe the management system within ...

Describe the management system within your case study business. Assess the risk of fraud in this business, and suggest methods for detection Management system in this ca

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