Internal Auditing
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 INTERNAL CONTROLS CHAPTER OBJECTIVE I. INTERNAL CONTROL II. COMPONENTS OF INTERNAL CONTROL III. CATEGORIES OF INTERNAL CONTROLS …………………………………………………………………………………………….. I. INTERNAL CONTROL Internal control is the process designed and effected by management and others to provide reasonable assurance about the achievement of the entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable
Continue reading THE AUDIT EVIDENCE PROCESS: TESTS OF CONTROL CHAPTER OBJECTIVE 1. THE CONCEPT OF AUDIT EVIDENCE 2. THE CHARACTERISTICS OF GOOD AUDIT EVIDENCE 3. SUFFICIENT , APPROPRIATE EVIDENCE 4. AUDIT TESTING PROCEDURES ……………………………………………………………………………………………… 1. THE CONCEPT OF AUDIT EVIDENCE Audit evidence can be defined in simple terms as any piece of information which assists the auditor to reach conclusion on the
Continue reading AUDIT -SAMPLING CHAPTER OBJECTIVE 1. AUDIT SAMPLING 2. SAMPLE SIZE 3. SAMPLE SELECTION 4. STATISTICAL AND NON-STATISTICAL SAMPLING 1. AUDIT SAMPLING Definition: Audit sampling as the application of audit procedures to less than 100% of the items (in population) with an account balance or class of transactions. Using Sampling in Auditing: Sampling is normally appropriate for areas in which there
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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