Account payable confirmation is the confirmation prepared and processed by auditors to cross-check the amount and information between the client’s records and the client’s supplier’s records. Those could be included in the outstanding balances and transactions. Account payable is the current liabilities recorded by the client in financial statements as of the reporting date. It […]
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Overview: Tailoring the correct audit procedures to the testing of fixed assets is not only helps auditors to minimize the detection risks but also helps the auditor to work more efficiently. That means the auditor could spend less time and effort on reviewing the fixed assets but still get the required result. The auditor could
Audit Procedures for Fixed Assets: Assertion, Risks and More Read 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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Explaination: Bank confirmation is the auditor’s audit procedure to test the existence, accuracy, and ownership of the bank account and bank balance of the entity. This procedure is normally performed during the interim audit rather than at the completion stage. However, if there is no interim, then it is performed at the final fieldwork the
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Definition: A compliance audit is the type of audit service that their performance or procedure is mainly focusing on whether the entity complies with local law, regulation, and related rules. A compliance audit also reviews whether an entity complies with internal rules, regulations, policies, decisions, and procedures. An entity is required to comply with the
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Definition: Operational audit is the type of audit service that the review is mainly focused on the key processes, procedures, system, as well as internal control which the main objective is to improve productivity, as well as efficiency and effectiveness of the operation. The operational audit has also targeted the leak of key control and
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Definition: A forensic audit is the kind of financial information investigation service provided by professional forensic accounting firms which are normally required by entities as the result of legal purposes. A forensic audit is normally required to have many skills and backgrounds that add up to the auditing and accounting skill. In general, a forensic
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Definition: External audit or external auditor refers to the CPA firm or people who are working in the CPA firm that perform audit services to their client. Both assurance and advisory such as financial audit, statutory audit, internal audit, tax consultant, and more. The reason behind calling them the external auditor is because they are
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The auditor conducts the audit to examine the accounting records, financial statements, and other non-financial procedures within a business entity. As defined by L.R. Dicksee, the audit examines accounting records to make an opinion if the records completely and accurately represent the transactions that actually took place. An audit’s primary objective is to get an
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What is audit sampling? Audit sampling refers to the procedure of less than 100% of the total population of items and an individual item in the population has the same opportunity to be selected. Audit sampling helps the auditor to have the principle to make a conclusion on the total population. That means by using
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