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1. The user inquiry activity audit log trial#
2. The user inquiry activity audit log professional#
3. The user inquiry activity audit log free#

Use the word ‘cast’ to mean totalling up a list – for example, ‘cast the trial balance’.Use terminology relating to audit like ‘cast’, ‘agree’, ‘trace’, etc. This confirms that the entity has procured goods based on an authorised purchase order. Instead, write the audit procedure as: ‘agree the description of items and the quantities ordered mentioned on the goods received note with the descriptions on the purchase orders raised on the vendor’. The audit procedure ‘check goods received notes’ does not mention why the goods received notes are to be checked. Is it the description of items received, the quantity received or the name of the vendor?Ģ Write down the reason for performing the audit procedure

This is vague as it does not explain what is to be examined in the goods received notes. For example, avoid vague procedures like ‘check goods received notes’. Step 3: Note the following while writing down the audit procedureĪudit procedures should be written in such a way that even a junior auditor will be able to understand what is to be done. There are many more procedures that will apply to this risk.įollow the above method for testing other assertions too.Į: Enquiry and confirmation directly from a third party – ie inquiry For example, the value per square feet in the valuation report should be similar to the value per square feet of other similar properties in that locality. The auditor should agree the assumptions used in the report for reasonableness. The amount added to revaluation surplus should be the difference between the net book value of PPE and the revalued amounts. The auditor will agree the availability of a revaluation report (a source document for the revaluation) and confirm that the value mentioned in the valuation report matches the amount at which the PPE is revalued and shown in the financial statements.įurthermore, the auditor will recalculate the revaluation surplus in accordance with the provisions of IAS 16, Property, Plant and Equipment to confirm the correctness of the accounting entries relating to revaluation surplus. Think of the audit procedures that should be performed in order to avoid the risk mentioned in step 1 (refer to ‘AEIOU’ below) One risk relates to the revalued assets not representing fair values, thus under/overstating PPE Identify the risk that will cause a material misstatement in the financial statements – the audit risk is the total value of PPE that may be misstated due to over-valuation/ undervaluation of PPE

Procedure relating to valuation of property, plant and equipment (PPE)Ĭhoose an assertion from Completeness, Valuation and allocation, Rights and obligations and Existence if you are testing the period-end balance of PPE valuation of non-current assets is the assertion tested This means that transactions and events have been recorded in the correct accounting period – for example, if goods are delivered prior to year end, they are included in the cost of goods sold, not inventory. This means that assets, liabilities and equity interests (capital and reserves) are physically present/belong to the entity on the reporting date. Furthermore, the entity is obliged to pay off the liabilities that are shown in the statement of financial position.

The user inquiry activity audit log free#

This means that the entity has a right to its assets – ie it is free to use or dispose of the assets as it sees fit. For this, the disclosures should use simple language and state matters clearly and concisely.Īccuracy means that amounts and other data relating to transactions and events have been recorded at the correct amounts – ie at the amounts appearing in the source documents. Furthermore, any allocations or valuation adjustments required (like impairment) have been made and financial and other information is disclosed fairly and at appropriate amounts.įinancial information is appropriately presented and disclosed, and disclosures are clearly expressed so as to make them understandable to the users. This means that all items have been included in the financial statements at appropriate amounts according to company policy and the relevant financial reporting framework. This assertion means that transactions and events and other matters that have been recorded actually took place – and relate to this organisation. This means that all transactions have been recorded in the financial statements – ie all assets, liabilities, equity interests (capital and reserves) and other disclosures have been included in the financial statements.

The user inquiry activity audit log professional#

An introduction to professional insightsĪ brief explanation of the various assertions is as follows:.