Day: December 26, 2021

The structure of each expense account should be thoroughly scrutinised and the distribution of the total expense over different methods comprised in the period under audit. Where there are significant variations between different months, the cause thereof should be ascertained. Read More …

There are two classes of outstanding assets the adjustment where of has to be examined; first, items accruing but not recorded in books and second, expenditure already incurred, a part or whole of which relates to a period subsequent to Read More …

1. Purchases : In some instances, invoices relating to purchases of goods that have been taken into stock are received too late to be included in the Purchase Day Book of the closing month. As a result, those will be Read More …

1. Bought Ledger : The structure of every account in the Bought Ledger is : opening balance, credits on account of goods purchased and debits raised in respect of returns, allowances and discount receivable, advances paid against goods, payments and Read More …

For studying the various avenues which are open to a ledger-keeper to commit a fraud, the auditor should find out whether the ledger-keeper extracts balances of customers and creditors from the ledgers and agrees their totals with their balances in Read More …

General Considerations The audit of ledgers generally involves the undermentioned steps :  Testing the strength and quantity of internal check;  Tracing the opening balances from the previous year’s records;  Checking the postings from subsidiary books and, if they are kept Read More …