Internal Auditing
How to Audit Cash Receipt from Account Receivable ( AR) | Trade Receivable Inspect Official Receipt (OR ) Inspect Invoice Daily Cash Report cash in at bank / Bank Statement Contract with customers Quotation Purchase order from customer ( customer order) Delivery note Credit note Customer confirmation Count stock etc.
Continue reading How to Audit / Check Payment for Purchasing Tangible Fixed Assets Inspect payment voucher (PV) Cash out at bank Purchase request Check Quotation Purchase order Sale order Delivery note from supplier Goods received note Inspect physical asset Invoice from supplier Official receipt from supplier Contract and warranty with supplier Transferred Fixed Asset Form ( which employee use this computer) Check
Continue reading How to Audit Salary (payroll) Expense Inspect reliable Payment Voucher (PV) Check Cash out at bank Request List of salary for each staff Inspect Payroll slip Inspect Employee time sheet Check Employee contract Inspect/count number of employees Check and recalculate Salary Advance, OT, tax on salary etc.
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How to audit account/trade payable (AP) easily Accounts payable (trade payable) occurred when companies purchased goods, products or services on credit from their suppliers. Companies need to control tight accounts payable to avoid fraud or error. There may be the following mistakes that may incur: Company repaid suppliers some amounts but we recorded incorrectly. For example, payments of $2,000 are
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How to audit account receivable easily Accounts receivables occurred when company sells goods, products or services on credit to their customers. Companies need to control tight accounts receivables to avoid fraud or error. In some cases, there may be the following mistakes that may incur: Customers repaid their accounts receivable but we recorded incorrectly. For example, payments of $1,000 are
Continue reading PRACTICAL CASH AND BANK AUDIT (Test 2) Daily cash report is prepared by accountant on 15 November 2017 is given as follows. Owner suspected that daily cash report on 15 November 2017 shows that cash and bank movement is decrease by $5,000 is incorrect, so he wants Internal auditor make appropriate audit procedures to check daily cash report above. Required:
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Continue reading Practical Internal Audit Reports are as follows. Question 1 ABZ Co is new company, so owner of company is not sure about payment process, so request you are accountant who will be promoted as internal auditor when company grows to list and explain payment process. Currently ABZ will pay its supplier, BMM Co for 100 Phones (inventories) of $50,000. Required:
Continue reading PRACTICAL INTERNAL AUDIT REPORT Learning Objectives I.INTRODUCTION II. INTERNAL AUDIT REPORT ……………………………………………………… I.INTRODUCTION In practice, internal audit reports will be different from company to another company or country to another country. Also internal auditors’ tasks are different, so they are assigned tasks that owners require to do. II. INTERNAL AUDIT REPORT What is an Internal Audit Report? The internal audit
Continue reading Practical Internal Audit Questions on Inventories The following Questions as follows: Question 1 Describe briefly about the main objective of inventory count. Question 2 What is completeness assertion for inventory? Question 3 What is existence assertion for inventory? Question 4 What are valuation and allocation assertion for inventory? Question 5 Describe briefly the strong internal controls for inventory purchase processes.
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