What documents are essential for a company Audit? Why?
Audit is the detailed inspection of accounting records in order to make sure accounting standards, authentication, and existence.
A company audit requires the following documents:
No.1) Incorporation document: The company must be incorporated under the Secretary of State by providing name, address, types of stock, main objectives, etc. Based on these the certificate of incorporation must be issued to the company; such certificate should be verified for knowing about the company and its existence.
No.2) Copies of contracts: The company may have contracts with external parties like underwriting contract, lease agreement, loan from bank, etc. Copies of these contracts must be checked because of knowing company’s obligations like principal payments, interest payments, etc. Such checking prevents manipulations if any.
No.3) Vouchers and invoices: examples of vouchers are cash memo, payment vouchers, journal vouchers; these are required for understanding the authentication of accounting entries. Copies of invoices make surety that goods and materials are delivered or received.
No.4) Depreciation schedule: This is to be prepared for fixed assets and it should be in accordance with GAAP. Depreciation plays a huge roll in accounting, since it is non-monetary and it reduces net income. This is required to be checked for protecting the interest of stakeholders (like shareholders, since they want higher net income).
Provide an overview of the audit risk model and explain why this is an essential tool utilized during an audit. Discuss one or more components of the audit risk model and the factors that influence these components.
In performing certain audit procedures, the auditor may encounter voided documents, inapplicable documents, or missing documents, or the auditor may stop testing before examining all the items selected for the sample. How should each of these situations be handled within the attribute-sampling application?
An audit trail: A. consists of business documents and records that provide evidence of transactions. B. requires employees to take an annual vacation. C. limits the number of employees who have access to company assets. D. requires the use of security cameras and alarm systems.
What is an audit? Why is an audit so often considered to be the final phase of a budgetary process?
\ndicate whether you would expect to find the following documents in the permanent audit file or the current-year audit file. a. A letter from a customer confirming an account balance. b. A memorandum describing the auditor’s work and conclusions regarding the adequacy of the allowance for doubtful accounts. c. A copy of the client’s articles of incorporation. d. A description of the client’s internal control structure. e. A worksheet containing a bank reconciliation. f. A worksheet containing an analysis of...
What is an audit, and why are audits performed?
Why is the planning process of an audit important? What are the framework of audit planning? If you were the lead auditor, what specific techniques would you use to mitigate material misstatement? limit the answer to 200 to 250 words.
what is a post audit? why is a post audit critical to good investment decision making?
Why would these ownership structures have these kinds of documents and procedures? In other words, what is the purpose of these documents and procedures?
Once an audit has been completed, what purpose does it serve? Why are the audit report findings important? What is the role of recommendations?