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.
Continue reading Practical Internal Audit Questions on Tangible Fixed Assets as follows: Question 1 ALK Group Co faces problem of managing fixed assets, and non-current assets may lose. Now shareholders of company requests internal auditors, accountants and admin officers corporate each other to make fixed asset management procedure for their company. Required: Make tangible fixed asset management procedure Question 2 Recently company
Continue reading Practical Audit Questions on Trade Payable and Trade Receivable as follows: Question 1 Recently Gold Trading Group Co faces problem of controlling trade receivable after financial manager resigned. Shareholders of company suspect a few trade receivables are incorrect, so they require internal auditor check one customer, Trading Co, as first sample. This customer trade receivable is required to check from
Continue reading PRACTICAL CASH AND BANK AUDIT (Test 1) Questions for practical cash and bank audit as follows: Question 1 ToP Trading 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
Continue reading PRACTICAL CASH AND BANK AUDIT Learning Objective I. INTRODUCTION II. TYPE OF AUDIT PROCEDURES III. ADJUSTING THE BANK LEDGER ACCOUNT AND BANK RECONCILIATION STATEMENT IV. AUDIT PROCEDURE FOR CASH AND BANK V. PRACTICAL DOCUMENTS FOR CASH AUDIT ……………………………………………………………………. I.INTRODUCTION In practice, cash in Company is the most important asset among other assets and liabilities, so company should have strong internal
Continue reading How to prepare post-closing trial balance (after closing trial balance): A post-closing trial balance is a trial balance which is prepared after closing all of the temporary accounts in the general ledger. The temporary accounts are as follows: Income statement accounts such as revenue, expense, gain, and loss accounts; Income summary accounts; Temporary balance sheet accounts such as the sole proprietor’s drawing account or the corporation’s dividend
Continue reading What is an adjusted trial balance? After we make any adjusted entries, we will prepare adjusted trial balance. An adjusted trial balance is listing of all the account titles and balances in the general ledger after the adjusting entries. The purpose of the adjusted trial balance is certain that the total amount of debit balances in the general ledger equals the total amount of credit balances. Adjusted trial
Continue reading