Cash and cash equivalents: Obtain statements and check the balance agrees to the trial balance, Obtain direct confirmation from financial institutions regarding the balances and terms of accounts held to verify their existence, completeness and accuracy, Conduct a physical count of funds on hand and reconcile it with the recorded balance, Assess the effectiveness of internal controls over receipts, payments and recording processes to identify potential risks of misstatement or fraud, Property, plant and equipment: Conduct physical inspections to verify their existence and condition, Examine purchase invoices, contracts, and supporting documentation to verify the acquisition cost and ownership, Recalculate depreciation expense to ensure it has been accurately computed in accordance with the company’s depreciation policy, Assess the company’s capitalization policies to ensure they are consistently applied and in accordance with relevant accounting standards, Payroll: Check personnel files to ensure that employee details, such as job title, pay rate, and employment status, are up-to-date and consistent with records, Recalculate taxes and other deductions for a sample of employees to ensure they are correctly computed and remitted, Verify that any changes such as new hires, terminations, salary changes, and bonuses, are properly authorized and documented, Select a sample of monthly payments to employees and tax authorities, and trace them to bank statements to confirm that the amounts paid match the records, Loans Payable: Send confirmations to lenders to verify the existence, terms, and balances as of the balance sheet date, Examine agreements and related documentation to understand the terms, conditions, interest rates, repayment schedules, and covenants, Recalculate the interest expense for the period to ensure that it is accurately recorded in accordance with the terms, Evaluate the company’s compliance with covenants by reviewing financial ratios, reports, and other requirements stipulated in the agreements,

Mapping audit procedures

Trykke
Integrere

Rangliste

Visuel stil

Indstillinger

Skift skabelon

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