Day 6 & 7
15 May 06
1. Compilation of Office Design – confirming all opening balances with General Ledger and compare figure to last year’s audited accounts.
2. Compilation of Loukas Medical – prepared section Y (detailed profit and loss).
3. Sorting of Bank Statements – to indicate years which request has been send out to banks of clients. The request is to inquire the closing bank balances of the clients. The banks reply is used to confirm the figure of cash at bank.
4. Opening of new compilation audit file for Dotz International.
16 May 06
1. Completed sorting of Bank Statements.
2. Callover for Rotary Club’s financial statements
3. Prepare draft account for Loukas Medical. Obtain last year’s accounts and update it for the current year. Completed the unaudited BS, PL, changes in equity and cash flow. Every client must have a permanent audit file where permenant records are stored (eg. Operating and finance lease). Every compilation must have an audit compilation program which will indicate the things to be done in a compilation.
4. Went to Men’spool Pte Ltd for auditing with Thai Tong.
a. To always carry stationeries and calculator
b. Start by comparing the figures in the trial balance to the client’s general ledger. This is crucial as the TB is used to prepare the financial statements. Need to verify that figures tally.
c. Prepared payments test. Before any audit, prepare an audit plan. This will show the materiality level, the number of samples to be collected and so forth. To count materiality level = [(turnover*%) + (asset*%) + (profit*%)] / 3. In the payments tests, record any payments made that are higher than the materiality level (from the GL – bank). Then, from the payment vouchers, search for that transaction. Verify by checking the supporting documents (can be a PO, DO, tax invoice), casting, check for authorization and whether it was posted to the GL (usually, this is yes).
d. Prepared sales test. From the GL, record sales above the materiality level (name, invoice number, date and amount). Then, look for the sales invoice. Ensure that
a. the transaction agrees to the DO
b. was authorized
c. contract was agreed
d. GST agreed (ensure that GST is sales*0.05 and check it with the tax documents)
e. Casting checked
f. At arm’s length (to know principal activity from section L)
g. Posting to sales and debtors ledger
h. Check subsequent receipts
e. Bank reconciliation. Record dates when unrepresented cheques and deposits were cleared.
Today is the first day I came back early. Reach NTU at 6.50pm (usually I'ld have just left the office)...hehe..when to client's place. Tomorrow will be another interesting day at the client's place. Own office man! Not to mention, its near Jurong Point...haha..can sleep another hour.
1. Compilation of Office Design – confirming all opening balances with General Ledger and compare figure to last year’s audited accounts.
2. Compilation of Loukas Medical – prepared section Y (detailed profit and loss).
3. Sorting of Bank Statements – to indicate years which request has been send out to banks of clients. The request is to inquire the closing bank balances of the clients. The banks reply is used to confirm the figure of cash at bank.
4. Opening of new compilation audit file for Dotz International.
16 May 06
1. Completed sorting of Bank Statements.
2. Callover for Rotary Club’s financial statements
3. Prepare draft account for Loukas Medical. Obtain last year’s accounts and update it for the current year. Completed the unaudited BS, PL, changes in equity and cash flow. Every client must have a permanent audit file where permenant records are stored (eg. Operating and finance lease). Every compilation must have an audit compilation program which will indicate the things to be done in a compilation.
4. Went to Men’spool Pte Ltd for auditing with Thai Tong.
a. To always carry stationeries and calculator
b. Start by comparing the figures in the trial balance to the client’s general ledger. This is crucial as the TB is used to prepare the financial statements. Need to verify that figures tally.
c. Prepared payments test. Before any audit, prepare an audit plan. This will show the materiality level, the number of samples to be collected and so forth. To count materiality level = [(turnover*%) + (asset*%) + (profit*%)] / 3. In the payments tests, record any payments made that are higher than the materiality level (from the GL – bank). Then, from the payment vouchers, search for that transaction. Verify by checking the supporting documents (can be a PO, DO, tax invoice), casting, check for authorization and whether it was posted to the GL (usually, this is yes).
d. Prepared sales test. From the GL, record sales above the materiality level (name, invoice number, date and amount). Then, look for the sales invoice. Ensure that
a. the transaction agrees to the DO
b. was authorized
c. contract was agreed
d. GST agreed (ensure that GST is sales*0.05 and check it with the tax documents)
e. Casting checked
f. At arm’s length (to know principal activity from section L)
g. Posting to sales and debtors ledger
h. Check subsequent receipts
e. Bank reconciliation. Record dates when unrepresented cheques and deposits were cleared.
Today is the first day I came back early. Reach NTU at 6.50pm (usually I'ld have just left the office)...hehe..when to client's place. Tomorrow will be another interesting day at the client's place. Own office man! Not to mention, its near Jurong Point...haha..can sleep another hour.
posted by Sueanne Low at
9:48 PM
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