Skip to main content

Audit procedures

Audit procedures
Observation
Observation consists of looking at a process or procedure being performed by others. It could be used here
to observe employees scanning their cards when they start and finish a particular shift. However, its use is
limited because it only provides evidence that the process happened at the time of observation. It should be
used in conjunction with other audit procedures.
Inquiry
Inquiry consists of seeking information of knowledgeable individuals, both financial and non-financial,
throughout the entity or outside the entity. This can be used to find out how the time recording system
works by interviewing relevant staff so would be a good procedure to use.
Recalculation
Recalculation consists of checking the mathematical accuracy of documents or records. It could be used to
calculate the hours worked according to the information on the time recording system.
Reperformance
Reperformance is the auditor's independent execution of procedures or controls that were originally
performed as part of the entity's internal control, either manually or using computer-assisted audit
techniques. The auditor could test the controls in place within the time recording system using CAATs.
Analytical procedures
Analytical procedures consist of evaluations of financial information by studying plausible relationships
among both financial and non-financial data. They can be used in this case to compare the time recorded per
the system to the standard hours per employee plus any overtime worked.
(Note: Only four were required.)
Tutorial note
inquiry where a representation of information or of an existing condition is obtained directly from a third: Confirmation would not be a valid procedure in this question because confirmation is a type of

Comments

Post a Comment

Popular posts from this blog

leadership skills,skills coaches,skills holidays 2011 top skills types

presentation skills ,leadership skills, skills coaches ,skills holidays ,   improve reading skills   key skills maths ,   skills coaches  good leadership skill   free skills test skills   study skills class,  assessment test functional    skills resources, skills   bus trips, skills coach  holidays computer skills    study skills   social skills    holidays computer skills    management skills   communication skills  
Post a Comment
Read more

Managing risk

Managing risk There are many techniques available to manage risk. Some look to manage overall risk, whilst others target specific risks. Avoiding risk Some risks can be totally avoided. If a business has identified that opening a subsidiary in Austria appears high risk, then not opening the subsidiary solves the problem! However, to totally avoid a business opportunity is often a rather extreme reaction – and if no risks are taken, the chance of returns being earned is small! Reducing risk Overall Risk Reduction Risk is the uncertainty caused by variable returns. One way to deal with uncertainty is to By operating in many different sectors, it is likely that when one sector is performing badly, another will be doing well, leading to a diversify . smoothing of profits. Advantages of Diversification ● Smoothing of profits, making forward planning easier ● May be economies of scale between some sectors, however diverse those sectors are. Disadvantages of Diversification ● Spreading r...
Post a Comment
Read more

what are learning skills how improve it and list of skills

what are learning skills how improve it and list of skills are as: learn English ,  improve learning skills .earning leadership skills study tips learning and skills  teacher training, communication courses study help interpersonal skills  study skills survival skills resume skills management skills presentation skills job skills writing skills computer skil ls
Post a Comment
Read more