Audit Procedures

Audit Procedures for Cost of Goods Sold: Risks, Assertion, and Procedure

The cost of goods sold testing is conducted at the same time as inventory testing is carried out for purposes of the balance sheet. The cost of goods components can broadly be categorized into two major components. Firstly, the auditor is supposed to determine the overall amount of inventory sold. If the auditor has been …

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Audit Procedure of Operating Expenses (Assertion and Risks Included)

Audit procedures are mainly used by auditors in order to determine the overall quality of the financial information that is provided by their clients, subsequently resulting in the expression of an auditor’s opinion. As far as company expense reviews are concerned, it can be seen that auditors are supposed to evaluate the expenditures in order …

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Audit Procedures for Employee Benefits (Explained)

Employee Benefits Employee benefits have been characterized by the Bureau of Labor Statistics as any type of aberrant or non-monetary remuneration paid to a worker. These might be legally necessary or guideline, as are business commitments to Social Security or medicinal services benefits, or they might be optional, for example, commitments to retirement investment funds …

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Audit Procedures for Testing Sales Revenues (Risks and Assertions Included)

Overview: The audit procedure is one of the most important things that auditors need to ensure that they are well and correctly prepared, tailored, and executed to minimize audit works and reduce audit risks. Sales revenues are one of the sensitive areas that auditors need to place their great attention on since it is the …

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Audit Procedure For Depreciation Expenses (Risks and Assertions)

Overview: Depreciation expenses are one of the significant expenses that reporting in the company’s income statement. Those expenses are the costs that the entity charged to fixed assets used for operation during the periods through depreciation by using the systematic methods accepted by certain accounting standards. In the income statement, depreciation expenses are allocated in …

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Auditing Inventories: Procedures, Risks, Assertion, and More

Overview: There are many audit procedures and approaches that auditors could use to perform during their detailed testing of the inventories report by management in the financial statements. Before going into detail on the procedure, it is good to start with the overview of inventories first. Inventories are the current assets that reporting in the …

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