How will you do the audit of payroll or employee benefit expenses?
● Summarise the pay register on a month wise basis. ● Perform the analysis of month wise variance of gross pay and inquire reasons for major changes which are not substantiated by change in head count or payscale. ● Perform head count reconciliation procedure to match the number of employees each month i.e. (Opening employees…...
What are the criteria to define a reportable segment as per IND AS 108?
An entity should report separately information about an operating segment that meets any of the following quantitative thresholds: ● Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments. ● The absolute amount of its reported…...
What are the audit procedures for unusual Journal entries testing?
● Journal entries made to unrelated, unusual, or seldom-used accounts. ● Journal entries made by individuals who typically do not make journal entries. ● Journal entries containing consistent ending numbers (“999”). ● Journal entries with line items containing specific wording. ● Unbalanced journal entries. ● Journals recorded at the end of the period or as…...
What are the audit procedures for Cash and Cash Equivalents testing?
● List of all bank accounts should be obtained from client ● Independent Bank Confirmations are sent to all banks (with whom the client holds an account) to ensure the existence & valuation of the balance at year end. ● Reconciling of balance as per books with the Bank confirmation and bank statement to ensure…...
What are the audit procedures for Property, Plant & Equipment testing?
● Reconciling the FAR (Fixed assets register) and GL to ensure the accuracy of the books of accounts. ● Recalculation of the depreciation as per useful life (prescribed in Schedule II of Companies Act, 2013 or as per management estimate) and scrap value. ● TOD of Additions and disposals to ensure the completeness of the…...
What are the audit procedures for Account Receivables testing?
● Ledgers, Agreements and other related supporting documents are obtained from the client to ensure the completeness & accuracy transaction ● Perform ageing analysis and check whether there is any need for making provision for doubtful debts for long outstanding balances. ● Independent external Confirmations are sent to the customers and their response are noted…...