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selection of a sample - audit processthe following accounts must be involved in debtors circularisation1 large balances since they are large and the
comparison of the negative and positive methodsnegative methodaccording to this method of circularisation the customer is asked to communicate only
audit approachthe auditor1 must get the cooperation of the client as simply the client can authorise third parties that communicate along with the
existence of debtors - audit processthe easiest technique to establish the existence of a debtor is to enquire the debtor if he exists this is done
valuation of debtorsdebtors are valued simple like other assets at the lower of cost and total realisable value valuation of debtors is actually a
debtors - audit processconsidering that what we have gone by on the other assets the audit work to check the figure of trade debtors should be
historic costs methods - long term contractsyou will notice such this exercise is completely dependent on the company estimating its further
valuation - long term contractsthe basis of valuation should be cost plus attributable profit as benefits less foreseeable losses and progress
verification work - audit processat the same time the audit process will need verification work as an example examination of costing records
long term contracts - audit processthe authoritative document with reference to long term contracts is ias 11 construction contracts and ias 18
work in progresswhat such applies to goods for resale applies uniformly to work in progress even when the items present greater problems of valuation
auditors procedures - disclosure and presentation1 ascertain that what steps the client uses to identify suppliers selling on terms that reserve
buyers - disclosure and presentationthis case case of aluminium industries vaassen b v v romalpa aluminium ltd are simply relevant whether creditors
beneficial ownership or titlein january 1976 the famous case of aluminium industries vaassen b v v romalpa aluminium ltd radically altered the law
non-attendance at stock takeswhether the auditor is unable to attend a stock take since he has numerous clients along with the same accounting date
auditors procedures after stock takingit is particularly a follow up exercise and it includes1 checking the cut off along with the details of last
auditors procedures during stock takingthe main task during stock taking is to ascertain where the clients employees are carrying out their commands
auditors procedures before stock taking1 study of the clients stock taking recommendations and instructions for improvements or changes whether the
planning for stock takingstock taking should be planned well in carried out and advance carefully and systematically through persons fully informed
stock taking - audit processthe procedures for carrying out physical stock taking vary in detail according to the circumstances and size of the
existence - detailed audit of stockin the previous the auditor accepted a directors certificate as to the existence of stocks until some cases
valuation - detailed audit of stockias 2 prescribes such stock be priced at the lower of price and net realizable price it is up to the auditor to
cost and authorization - detailed audit of stockcosta favor of the auditor this is restricted generally to determining the technique adopted through
detail work on stocks - audit of current assetsdetail work on stocks is imperative in an audit since there are other review tests that are equally
auditors duties - audit of current assetsthe auditors duties can be summarized as followsa the accounting ascertaining policies adopted through the