2010-09-08 09:06
Audit evidence is all the information used by the auditor in arriving at the conclusions on which his opinion is based and includes the information contained in the accounting records underl… Read More
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Evaluation of a person, organization, system, process, enterprise, project or product
2010-09-06 20:23
(a) Assertions about classes of transactions and events for the period under audit;i. Occurrence – transactions and events that have been recorded have occurred and pertain to the enti… Read More
2010-08-25 15:10
Controls over Banking of Receipts: a) Receipts should be banked daily. The receipts should be banked intact - for example no cash payments should be made out of cash receipts. Banking intact… Read More
2010-08-24 15:13
For many businesses, sales are made on credit and so objectives for the sales cycle includes control debtors as well. These control objectives include: a) Customers' orders should be authori… Read More
2010-08-23 08:38
Initiation Stores requisition Stores keeper Authorization Purchase order Purchasing officer Custody Goods received note Receiving officer Recording Invoice Account department Documenting the… Read More
2010-08-22 09:42
These are often summarized by using the mnemonic SOAP MAPS as follows: a) Supervision b) Organization c) Arithmetic and Accounting d) Physical e) Management and Monitoring f) Authorization g… Read More
2010-08-21 14:51
Based on our previous studies we can now identify the following principal benefits that may arise for an entity from a sound system of internal control: a) Assurance that all transactions… Read More
2010-08-20 14:14
Cash book is a book of original entries in which all of the cash transactions are recorded very firstly. The cash transaction of a concern needs a separate book named as cash book. A cash… Read More
2010-08-19 12:03
Need for a Purchase Return Journal? Purchase return journal has the same story as we just have discussed in previous unit. The only thing to remember is that it is also known as return ou… Read More
2010-08-18 06:49
Need for Sales Return Journal As the business expands the number of complaints and returns inwards also increases. Such return inwards can be recorded in the sales journal as a negative… Read More
2010-08-17 04:57
Amount of trade discount is not required to be recorded in the books of accounts. Actually it is the discount which is agreed before entering into the transaction of sales or purchase, the… Read More
2010-08-16 05:26
It depends upon the complexity of transactions and size of the business that what books of original entries are required to record the transactions. For a very little business, having very… Read More
2010-08-15 13:33
To enter into a transaction we need approval from our responsible managers. When, after having approval of a manager, transaction takes place, such transaction should be evidenced by a doc… Read More
2010-08-14 13:13
a) Cash received and expended by the company b) Sales and purchases of goods by the company c) All Assets and liabilities of the company; and d) In case of a company engaged in production… Read More
2010-08-13 14:46
• Civil Liabilities (arising from law suits/Liability for negligence) • Under law of contract (initiated by the audit client) • Under law of tort (initiated by other users of… Read More
2010-08-12 14:50
The liabilities of auditors of a company can be studied under following heads: a) Civil Liabilities Civil liabilities mean the disputes over losses caused to one party by acts of another. Th… Read More
2010-08-11 07:46
Auditor Powers / Rights of an: i) Right of access to books of account and vouchers. ii) Right to receive information and explanations. iii) Right of access to books and papers of branch… Read More
2010-08-10 07:57
Actions Required TimingNotice from a member from the date of AGM At least 14 days Send Copy of the notice to: a) The retiring auditor forthwith b) Members At least 7 days before The date of… Read More
2010-08-09 07:45
Fixation of remuneration of auditors depends upon the authority appointing the auditors, i.e. i) If auditors are appointed by directors, directors shall fix the remuneration. ii) If auditors… Read More
2010-08-08 09:44
First Auditorsa) The first auditors of a company shall be appointed by the directors within 60 days of incorporation of the company. b) The first auditors will hold office till the first ann… Read More
2010-08-07 08:08
What is reasonable assurance?It means a conclusion that the financial statements are not materially misstated. An auditor cannot obtain absolute assurance because of limitations described in… Read More
2006-06-07 11:16
Purchases are often made on credit and so the purchases cycle includes payables. You also need to bear in mind that 'purchases' has a wide meaning in terms of the purchases cycle as purchase… Read More
2006-06-07 11:16
Auditor should obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.Sufficient appropriate Audit EvidenceSufficiency: The… Read More
2006-06-07 11:16
The auditor uses one or more types of audit procedures described below:(i) Inspection of Records or DocumentsIt consists of examining records or documents whether internal or external, in pa… Read More
2006-06-07 11:16
Control Objectives For many businesses, sales are made on credit and so objectives for the sales cycle includes control debtors as well. These control objectives include: a) Customers' order… Read More
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