Guidelines for Verification of Book debts by Auditor While verifying book debts, an auditor should follow the following procedure. 1. The auditor should obtain the list of debtors
How to an auditor physically verify Stock- in- trade Goods are easily subject to misappropriation and manipulation. Very often firms use stock in trade as one of the
Factors that affect the Gross Profit of an Organization The following factors may increase the gross profit of an organization. 1. If the trading expenses are wrongly debited
Documents to be Verified in Vouching of Directors Remuneration An auditor should verify the following documents while vouching directors remuneration. 1. The agreements with managing directors. 2. The
What is a Balance Sheet Audit? Verification of all items included in the balance sheet combined with the examination of related income and expenses accounts is known as
The information to be disclosed with respect to each item in balance sheet is discussed below. Share Capital Share capital should be shown under the following heads in
What is Efficiency Audit? Efficiency audit is much broader in its scope. The scholars express two distinct views on this subject. According to one school of thought, the
What is Test Checking? Test checking in Audit means checking a few transactions selected at random from a large number of transactions. It is also known as “Selective
Using Special Ticks in Auditing While auditing the books of accounts of a business, often auditor uses a variety of distinctive ticks or symbols to indicate that a particular