Details Of The Audit Process In Depth
An auditing is a detailed examination system applied within the business transactions of an organization and includes the tracing of account information from its source to the conclusion, thoroughly inspecting the different phase of the records created and maintained by the authorized people of the same firm.
In-depth checking of the audit does not indicate a 100% checking, in fact, it is the detailed evaluation of the opted transactions from its origin to the end point. Mostly, this is used along with the test checking process.
Consider, for example, the auditor has decided to proceed his depth checking with 25 percent of the purchase transactions held in the company. Further, he should continue with checking
- The purchase requisitions,
- All the tenders or even the purchase orders made by the different departments,
- The respective bills of the purchase,
- Goods Received notes if any,
- Corresponding inspection notifications and their summary,
- Any purchase journal if issued,
- Stock orders and their register books and so on.
Hence, the auditor should be vigilant and should check the purchase records without missing any details. This in-depth examination results can help him to test on the accounting system and other internal controls of the company.
Analysing the case of audit of income
This involves checking with the details of the cash sales.
- All the cash sales registers kept in the company departments should be thoroughly checked with its carbon copies of the cash bills to see whether the recordings match. Emphasis should be given to the starting and year-end sessions of the accounting year.
- The daily cash summary prepared by the company staff should be also checked for confirmation.
- The auditor should be more attentive in the cases where cash memos are issued during the sales but the money is not actually received in return.
- An auditor must take the initiative to choose a particular representative item that should be made liable to the vouching process to acquire an idea about the Crypto VIP Club extend internal control and its reliability.
- The summary from the salesman, the security guard, and even the cashier must be considered and should be compared with the already collected details.
- It is essential to note the dates on the cash bills and the date of issuing the cash receipt. Ensure that these data match and if any difference is noticed, proceed to inquire about the same.