Audit Procedures are carried out by the auditor in order to generate audit evidence.
There are a number of audit testing procedures that may be available to the auditor. Which procedures are actually used will depend on the area that is being audited, and the evidence available to the auditor.
List and explain four audit procedures that are carried out by the auditor.
Describe briefly about the main objective of inventory count.
What is completeness assertion for inventory?
What is existence assertion for inventory?
Describe briefly the strong internal controls for payment processes.
TTT Trading Company buys and sells four major products such as tables, scanners, air conditioners and Printers.
Recently company noted that some printers are not included in list of inventory record. Company suspects that other stocks may not include in list of inventory record.
You are required to make procedures for auditing inventory to make sure physical inventories are completeness with list of inventory records.
BBN Company is a manufacturing company that has many fixed assets, but these fixed assets may be different between list of fixed assets and physical fixed assets.
Company assigned list of fixed assets controlled by inventory controller.
The following extract of list of fixed assets for internal audit for November 2016 as follows:
|Type of Fixed assets||Units|
- For verifying fixed assets existence, you may require additional information for internal audit of fixed assets, list additional information that you will request from inventory controller.
- You are required to make procedures for auditing fixed assets to make sure physical fixed assets are existence.
BBN Company used QuickBooks accounting system to prepare financial statements, and company customizes reports for internal purposes. Daily cash report (control cash receipt and cash payment, its bank and cash balance) is customized and printed from QuickBooks accounting system for financial manager approval.
Daily cash report on 10 November 2016 shows that cash and bank movement is decrease by $30,000. Internal auditor suspected that this movement is incorrect.
You are required to check this cash and bank movement for daily cash report on 10 November 2016, and you may assume that beginning cash and bank balance on 10 November 2016 is $70,000 correctly. Define ways and procedures that you should use to check this movement.
Recently AAB Co faces problem of controlling trade receivable, and balance of trade receivables may be error.
Shareholders of company suspect a few trade receivables are incorrect, so they require internal auditor check two customers, CNB and NNM for two first samples. These customer trade receivables are required to check from beginning of business relationship with AAB Co until 30 December 2016.
List of Individual trade receivable as follows:
The first days of business relationship with CNB and NNM are 10 January 2016 and 20 March 2016, respectively. You are required to list and explain practical internal audit procedures for both cases.
THE END OF QUESTION