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Auditing

Auditing


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About the Book

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: December, 1897. I. State briefly a proper course of procedure for making a correct audit of the books and accounts of (a) a manufacturing business, (ft) a fire insurance company, (c) a bank. (a) In auditing the books of a manufacturing business, special attention should be paid to those points wherein it differs from an ordinary trading concern. As in every other audit, the cash book should be checked exhaustively. All receipts should be traced into the bank; all payments verified by vouchers; all footings and postings checked; and the balance on hand agreed with the pass-book at the close of the period under review by the construction of a reconciliation account. The footings of all books of original entry should be checked, and where possible the postings also. The trial balance should be proved; the closing entries into the profit and loss account rigidly scrutinized; and finally the balance sheet made up and certified to. The above procedure is common to the audit of most businesses; but in a manufacturing business the pay-roll should be carefully checked, and where cost accounts are kept, the purchases, consumption, and final inventory of raw material should be gone over. (b) In the audit of the books of a fire insurance company the total amount of income receivable should be first ascertained and verified from the Policy Book and the Renewal Register. If renewal receipts are given forall existing policies, the unused receipts should be produced as vouchers for policies discontinued. If blank receipts are used at the head offices and at the branches and agencies the number of receipts issued, used and returned should be compared with the number of renewals and discontinuances. When the gross amount receivable is found, the insurance discontinued can be verif...


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Product Details
  • ISBN-13: 9781459036413
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 32
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 1459036417
  • Publisher Date: 01 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 77 gr


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