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contingencies and provisionsi receive the clients schedule of provisions and seek and contingencies supporting documentation in the form of legal
litigation and claimsisa 501 audit evidence - additional consideration for exact items requires such auditors should carry our process to become
ias 37 provisions contingent assets and contingent liabilitiesias 37 was mattered in order to deal along with the subjective area of provision and
capital commitments - audit processthe companies act needs capital commitments be disclosed through a way of note to the accounts therefore the
pending litigation - audit processsince of the inherent uncertainty in calculating the outcome of legal actions so this is an especially difficult
verification procedures - long-term liabilitiesa received a schedule detailing the sums due at the starting of the year redemptions and additions and
long-term liabilitieslong-term liabilities are generally evidenced through an agreement called a debenture for this purpose long-term loans are often
reserves - audit processmovements in reserves need disclosure in the balance sheet the loss and profit account the directors reports or in the
share capital - audit processshare capital is a special type of liability and when it has been issued during the year then verification procedures
ias 12 income taxes1as 12 needs a deferred tax liability should be well known for all taxable temporary difference with minor exceptions as goodwill
capital allowances vs depreciationwhether the client can prove such they will keep the existing levels of investment in original terms then there may
audit functionthe audit functions as follows as1 to verify the estimation of timing differences2 to ensure such permanent differences have not been
deferred taxation - audit processdeferred taxation results from the fact such the income tax department require different rules for calculating
taxation - audit processcompanies suffer corporation tax the companies act use that corporation tax payable on the profits of any specific year
provision and accrualsprevious to we consider the audit procedures along with regard to accruals and provisions it is essential to clarify the
process to adopt liabilitiesit is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to
examples of liabilitiesexamples of those liabilities area claims by employees for injury at work such should be covered through workmans
completeness of liabilitiesin distortion the directors tend to involve non-existent assets or keep out liabilities hence whereas along with assets we
general verification procedures - audit process1 get or prepare a schedule for each and every class of liability usually this would indicate the
verification of liabilities - audit processusually speaking the auditors duty along with regard to liabilities can be summarised follows as1 to
sundry debtors and loanssundry debtors and loans are not generally material assets of companies another than those companies whose business is to
dealings with directors and other parties - sundry debtors and loansdealings along with directors and other related parties the auditors duties are
valuation and petty-cash - cash and bank balancesvaluationtill recently valuation of banks and cash balances was got for granted till several
bank - cash and bank balancesthe major concern in this area is to establish the existence of the balances and more currently due to failures in some
prepayments - audit processprepayments similar to accruals are not mostly checked through the double entry system this creates them susceptible to