Basic 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 INTERNAL AUDIT ON INVENTORIES Learning Objectives I.INTRODUCTION II. COST OF INVENTORIES III. METHODS OF CALCULATING THE COST OF INVENTORY IV. INVENTORY COUNT V. AUDIT PROCEDURE ………………………………………………………………………………….. I.INTRODUCTION Inventory consist of : Goods purchased for resale Consumable stores ( such as oil) Raw Material and components ( used in the production process) Partly-finished goods ( usually called Work in progress-WIP) Finished
Continue reading PRACTICAL AUDIT ON TANGIBLE FIXED ASSETS Learning Objectives I.INTRODUCTION II.TRANSACTIONS AND ACCOUNT BALANCE ASSERTION AND AUDIT PROCEDURE III. FIXED ASSET REGISTER …………………………………………………………………………………………………………… I.INTRODUCTION Non-current assets are those assets which are held for continuing use in the business and are not intended for resale. Tangible Non-Current Asset- possesses a physical existence. E.g. land and building, plant, fixtures and fittings. II.TRANSACTIONS AND
Continue reading I.INTRODUCTION In practice, cash in Company is the most important asset among other assets and liabilities, so company should have strong internal control. Payment and receipts should be verified and approved by authorized persons to avoid fraud or errors. Payment and receipt process should be complied with internal policy for internal audit purpose. Material or immaterial concept will be focused
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