A large
part of the final audit stage will be taken up with the verification of the
assets and liabilities appearing in the balance sheet. There are well
established techniques for verifying specific assets and liabilities. All
auditing examinations contain one or more questions on this subject.
The
audits has a duty to verify all the assets appearing on the balance sheet and
also a duty to verify that there are no other assets which ought to appear on
the balance sheet but don’t.
audits has a duty to verify all the assets appearing on the balance sheet and
also a duty to verify that there are no other assets which ought to appear on
the balance sheet but don’t.
Assets
are normally divided into categories like this:
are normally divided into categories like this:
We
will look at the audit implications of each category in turn.
will look at the audit implications of each category in turn.
This
is not an accounting book so it does not include detailed explanations of how
these categories of assets have to be disclosed in the financial statement.
Students should be aware of the disclosure requirement under the companies Act
and the relevant financial reporting standards. We will refer to them in the
text but you should know and understand the key disclosure requirements of each
standard. This is a very common area for examination questions.
is not an accounting book so it does not include detailed explanations of how
these categories of assets have to be disclosed in the financial statement.
Students should be aware of the disclosure requirement under the companies Act
and the relevant financial reporting standards. We will refer to them in the
text but you should know and understand the key disclosure requirements of each
standard. This is a very common area for examination questions.
