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怎么写会计essay?Accounting Essay怎么写？
File Number 1007 ACCG340 2009s1
Audit Documentation
This Advisory note is 22 pages long you may prefer to use it on screen rather than printing it out, obviously that is your choice. The Objective in supplying this material is to expand on and further illustrate ASA 230 to help you to understand how audit papers are assembled and assist you with the logical preparation of your assignment. Actually good working paper technique is a most valuable generic skill applicable to almost any field of study. An understanding of the hierarchical referencing methods will make life much easier for those of you who go on to honours and higher degrees.
Like any professional in these increasingly litigious days, auditors must be able to defend their actions through performing at a high level of excellence and being able to prove that they have done so. Remember that the wheels of the law turn very slowly and if something does go wrong it may be four or five years before you need to defend your actions in court. By then you will have long forgotten the fine details on which the case will turn, therefore these details must be fully documented. When the newly minted Senior council (QC) challenges you with all the wisdom of hindsight based on a knowledge of subsequent events not of course available to you when you made your decision, you need to be able to refute the damaging assertions and prove a high standard of work.
The means through which this objective may be attained is for Auditors to:
1. Maintain their objectivity and independence in performance by remaining clearly at arms length from audit clients. As you know neither you nor your staff can be officers or shareholders in a client company. The joint audit handbook includes pronouncements on this point while the joint code of conduct includes guidance as to what is and what is not acceptable professional and ethical behaviour. The basic point s to independence is to avoid close actual financial or personal involvement with the client be it actual or in appearance , public perception is as important as fact.
2. Keep their professional knowledge current through continuing education seminars etc Which is why good firms support staff training programs
3. Thoroughly understand their client and the industry in which the client is engaged. ASA315
4. Plan Audit work carefully.
5. Thoroughly supervise and review field work
6. Render a fearless objective professional opinion no matter what its impact might be. The Auditors integrity is paramount, he or she may perhaps prove to be mistaken but what really matters is that the opinion given is honestly held and issued in absolute good faith. If a member of the profession gives anything other than a reasoned, honestly held opinion the entire profession is diminished. #p#分页标题#e#
7. Complete comprehensive well indexed working papers which prove that:
o the work has been done and that the standards observed equal or exceed the standards laid down in the professions audit handbook. If you fall below the benchmark described in the handbook you are legally negligent.
o their understanding of the business and reasoning in applying that understanding to the collection and interpretation of evidence is sound
o their planning and supervision of the work performed was thorough and that they have taken all reasonable steps to ensure that the quality of their work is beyond reproach.
o they have modified their programs as appropriate to allow for any unexpected items or circumstances which might have emerged during the course of the audit
The work papers prepared in the course of the audit must fully document the whole process to provide a sound evidentiary basis for the formation of the audit opinion
.
This paper is a brief introduction to audit documentation. For the purpose of the exercise I am assuming that the auditor is considering his/her clients affairs for the first time.
Client Acceptance
Firstly the auditor should make general enquiries concerning the reputation of the potential client. Consider, his knowledge of the clients industry, the skill levels of his own available staff, such financial statements of the proposed client as might be available, together with the general economic outlook for the client. Next at the initial interview level he /she should make enquiry as to any plans for change the client may have and at the same time asking for details of the clients structure and organisation including parallel details for associated companies and subsidiaries. At the same time the Auditor will make inquiries among the business community and undertake a literature review (BRW, Financial Review, SMH, Stock exchange service etc) to research the companies background and will make discrete enquiries as to the directors reputation and integrity. Copies of this information will be placed in the Permanent file.
In the light of this information the Auditor then decides whether or not to accept the work if it is offered.
Systems Review
Assuming that the decision is made to proceed, which is not automatic - the first task is to investigate the client system of internal control.
Questionnaire
This usually starts with a questionnaire. If the firm is large ask the same questions three times of people at different ranks in the hierarchy: -
o At the top level - CEO and the Board.http://www.ukassignment.org/daixieEssay/Essayfanwen/
o Low down- shipping clerks, foremen, bookkeepers etc.
o Somewhere in the middle - department heads, Branch accountant etc
The reason for the seeming redundancy of a triple approach is simple. The CEO will tell you what he/she thinks/hopes is happening, this tells you what ‘should’ be happening conceptually, but, since the CEO is not likely to have actually done the ground work for years this view will not reflect reality. Asking the Lower ranks will tell you what they actually do and give you their interpretation of the reasons for doing it. Middle management will usually give you the best version of events since they are the ones who actually provide the inevitable ‘work arounds’ and negotiate the compromises needed to make things actually happen. Use the same questionnaire for all three interviews noting the names and ranks of the interviewees at the top of each page, if you use different coloured pens to note the different peoples answers it makes it easy to compare the resulting illusions. #p#分页标题#e#
Obviously the kind of questionnaire in use will vary widely depending on the type of business and on the clients recording methods. Manual, PC based and Mainframe accounting systems require different approaches.
This a tiny extract from part of a simple ICQ (Internal control questionnaire) regarding Cash Payment Procedures( answers are noted in italics):-
(This example only gives one set of answers – because most people do not own a colour printer)
When you have considered the three disparate sets of answers for a system, take two or three samples of each type of actual transaction for that system and 'walk them through' the process. IE trace them in detail from cradle to grave. In this instance it would mean checking the initial request for materials to the purchase order , the goods received record the suppliers invoice into the creditors ledger, reconciling the creditors statement, to the cheque requisition and so on . At all stages the auditor should be seeing that the appropriate signatures and initials appear on the documentation and that all relevant control processes and calculations have been completed as well obviously that the entries were accurate..
You will very probably find that none of the answers you were given properly reflect the actual process. It is not that people deliberately mislead you, they simply don’t know. Senior management tell you what happened twenty years ago when they did the humble jobs. The current workers give you their limited view of events and middle management tell you about their perceptions and interpretations of their obligations and how they have to negotiate to keep the peace between bosses and workers You will generally find the truth lies somewhere between middle managements answers and the lower ranks answers. Ask whatever questions you feel appropriate to clarify your revised understanding then base your substantive testing design on the composite or blended reality.
Flow Charts
A powerful but time consuming (and therefore costly) technique is to prepare flow charts giving a diagrammatic, sequential description of the clients processes. If you are lucky the client might have already prepared flow charts for their own use , obtaining copies of these documents could save the auditor from many hours of work (and save the client thousands of dollars in fees).
Flow charts are expensive to prepare and since clients frequently modify their processes keeping flow charts current is a high cost activity. Inaccurate charts are a serious source of audit risk. Accordingly it is common to use them as a supplement to other forms of systems description to illustrate complex points only rather than to chart a clients processes in full.
Block diagrams -a simplified form of Flow chart - are sometimes used to provide an overview of systems. Block diagrams are usually supported by narrative description.
#p#分页标题#e#A simple Flow chart for mail receipt of cheques from customers might look something like this:
This example uses the industry standard icons to indicate what is happening at each stage of the process. It is not, however, uncommon for client prepared flow charts using non standard symbols or for them to ascribe non standard meaning to standard symbols. In such cases a key must be provided with each chart to avoid confusion. The foregoing diagram is similar in kind to those commonly shown in text books it is not what I would use in practise being simplified down to block diagram which would in truth be of limited value. Professional flow charts are much more detailed and are in fact quite sophisticated documents
Narrative
In numbers of instances the auditor will simply produce a narrative description of the clients situation as illustrated next.
Client: Big Business Ltd
Period/Yr End 30-06-2xxx W.P # 2015
Prepared By: AD
Date: 27-04-20xx
Subject:
Control Environment
The Company manufactures plastic water pipe at its factory in Blacktown and is managed by its founder and sole proprietor Fred Williams.
Management is dominated by Fred who is responsible for marketing, purchasing, hiring and approving major transactions and all non routine transactions.
Fred clearly has a good in depth understanding of his industry and believes that hiring experienced personnel is important because of the limited opportunities a small firm has for segregation of duties and systematic supervision.
Fred has a conservative attitude towards accounting estimates
Mary Jones is the bookkeeper and is open and co-operative in discussing accounting matters with us she has a good grasp of routine accounting processes.
The firm has recently upgraded its PC accounting package and is transferring old records onto the new system. Fred is concerned to ensure that the new system works properly and has asked that we take particular care to support Mary during this transitional period.
New market opportunities are developing as the housing boom continues unabated in Sydney's south west. If the anticipated growth eventuates it may become appropriate for us to recommend more formal control mechanisms in the coming year ………………….. etc etc
Narrative descriptions are a suitable and cost effective means of recording an overview of a clients business environment and methods. They are commonly supplemented at critical points with block diagrams and flow charts.
http://www.ukassignment.org/daixieEssay/Essayfanwen/#p#分页标题#e#
Systems Analytical Review
Having completed the Questionnaire and/or Flow chart and/or Narrative descriptions the auditor analyses the clients control system strengths and weaknesses . The audit Senior prepares schedules of control weaknesses and compensating strengths together with notes on their audit implications and recommendations to management for discussion between the Audit senior and manager and the Client as under:-
Client: Big Business Ltd
Period/Yr End 30-06-2xxx W.P #
Prepared By: RH
Date: 27-04-20xx
Subject:
Client system Weaknesses discussion Schedule
Item Weakness:
Offsetting strength:
Audit significance : Recommendation to client / Specific Audit notes:
: Client Response Audit Manager Comments
01 …….. …….. ……. …….
………
12 Purchase orders not used for services or capital expense. but
majorCapital expenditure approved by Fred Williams-CEOand propprietor
That Purchase Orders be used for all purchases. And major items to be minuted Fred agrees and will institute recommendation
OK AD
27/09/20xx
13 Services can be obtained without prior approval but subsequent approval must be obtained for payment.
All service invoices approved by department heads who have budgetary responsibility.
Emphasise substantive tests in this area
Obtain list of specimen signatures and approval limit sfor testing Client considers existing arrangements adequate. Follow up at final review and reconsider for TofT audit next year.
etc ……. ……. …….. ……..
An alternative format sometimes used in this context is as follows:
Client:
Period/Yr End W.P #
Prepared By:
Date:
Subject:
Audit planning - Weakness review
System: Purchases Component: Supporting payment vouchers
Item Comment WP Ref etc
1 Weakness: Cheque signatories do not cancel supporting vouchers
<…..>
2 Offsetting strength: Nil
3 Audit significance : Little control is achieved through signatories sighting vouchers. Uncancelled vouchers could easily be presented a second time
<…..>#p#分页标题#e#
4 Specific Audit testing:
Sample test payments ensuring that all requisite vouchers are attached. Then review other payments looking for unsupported cheque requisitions. Use IDEA software to interrogate files looking for duplication of voucher numbers etc
<…..>
5 Recommendation to client: All vouchers to be stamped “Paid” , date and Cheque No written on them and signatories to initial them
.
6 Client Response Accountant accepts recommendation
OK AD
27/09/20xx
It doesn’t matter very much what audit work paper format is used so long as there is incontrovertible evidence of a systematic thorough systems review and discussion of weaknesses noted together with the client and the clients response thereto. If something goes wrong you must have proof that the client was warned of the risk thus throwing responsibility back where it belongs. Accordingly the auditor should always send the clients Audit committee a letter confirming the results of these systems discussions. The letter might take the following format :-
" Gentlemenhttp://www.ukassignment.org/daixieEssay/Essayfanwen/
This is to confirm our understanding of the systems in place at Big Business Ltd To that end we enclose copies of our working paper to date and recommend that you critically review them to minimise the risk of misunderstandings between us. Our enquiries show that ……………………….….
……………………………………………………………………and we suggest that you follow up on our recommendations concerning internal control to help reduce the possible incidence of fraud or error……..
If in your opinion we are in error as to any of the details listed above we shall be pleased if you will write to us describing our perceived error. This will help us design appropriate audit procedures to confirm that the system in place is an effective mechanism and may be relied upon to minimise the incidence of any possible fraud or error. please be aware that our comments in no way suggest that that any of your existing staff may be lacking in integrity it is simply the case that weak internal controls can allow error to occur unnoticed and strong controls help avoid needless embarrassment. We are ready at àll times to assist you in your deliberations in this regard……
Yours faithfully
CPA firm ….
Partner"
Copies of the questionnaire, flow charts, narratives and strengths and weaknesses forms and confirmation letters should be added to the permanent file back at the office.
The permanent file now holds backup copies of the basic descriptions of the clients systems as well as the background research carried out on the clients affairs prior to acceptance of the audit assignment. This archive enables the Audit senior to design a program suitable for the #p#分页标题#e#
clients circumstances and to keep pace with changes in clients systems which occur from time to time and update the audit program accordingly
The Audit Program
Having undertaken the systems discovery process through questionnaires and interviews etc the audit senior writes a draft Audit program which is reviewed by the audit manager. It is common to start with a “standard” core program appropriate to the clients industry group This will be extensively modified (or even replaced) to suit the individual clients circumstances. It is not unusual for the senior to decide to write a completely new program, and perfectly normal for sections of the core program to be overwritten with material tailored to the clients specific circumstances . One almost never uses a program straight “Off the shelf”.
The following illustration shows a typical standard medium sized business audit program for fixed assets. It would be modified/tailored to suit the specific client. Note that the audit objectives are stated, and that there is provision for cross referencing to supporting schedules as well as for the responsible audit clerk to acquit each task by initialling and dating the program. This of course contributes to the supervision and review function of Audit management.
Client:
XYZ Ltd
Period/Yr End 306/20xx W.P #
Prepared By: JT
Date:: 29/05/20xx
Subject:
Property, Plant and equipment Audit Program
Objectives
To be
Performed
By:
Date:
Time Budget
(Level-Hrs)
Actual
(InitialsLevel-Hrs) WP REf
OK?
Y/N
1 To verify Existence and Ownership
2 To ensure valuations are appropriate
3 To ensure adequate disclosure and appropriate presentation
Procedures
1 Obtain supporting schedules (summarised by FA classification showing Cost& Accumulated depreciation) Agree balance to GL record.
JT S-1 jtS-1
2 Vouch additions and disposals of material items by reference to appropriate documentation. Sight written authorisation for these transactions eg board minutes for material items.
JT
RD
FW S-3
A-8
J-16 Jt S-3
rd A-8
fw J-16
3 Check treatment of profit/loss on disposal.#p#分页标题#e#
JT S-2 S-2 http://www.ukassignment.org/daixieEssay/Essayfanwen/
4 Check suitability of depreciation rates used. Discus with management or engineering staff where appropriate
AD
JT M-1
S-2 M-1
S-2
5 Physical Inspection of sample of assets
1- Trace item back to accounting records
2- Trace sample from Accounting records to physical object
JT
GK
FW S-1
A-12
J-12 S-2
A-15
J-12
6 Review adequacy of insurance cover and sight policy document examining it for any unusual clauses (exclusions etc)
JT S-2 S-2
7 1- Sight Title deeds for Real property
2- Sight registration documents and leases for vehicles and plant
JT
RD S-1
A-8
8 Review valuation of asset valuations
1- Land & Buildings by reference to current local sales - consider revaluation where appropriate
2- Are any plant items no longer in use - if so they should be written off.
JT S-4
9 Review
1- Classification and description of amounts
2- Consistent application of GAAP JT
AD S-2
M-1
10 Analytical Review based on prior year value
JT
RD S-1
A-1
11 Additional Procedures
(Audit senior to add further procedures as required by the nature of the engagement)
Enquire as to effective working lives of plastic extrusion plant. New technology might make existing plant obsolete.
Conclusion
In respect of the above objectives:
(a) The audit procedures were applied in accordance with professional requirements
(b) Subject to any differences documented in the work papers the recorded values are materially correct
(c) Accounting principles are appropriate and have been consistently applied
JT
JT
AD
S-2
M1
S-2
M1
Reviewed:
Reviewed:
The letters and numbers in the budget column indicate the staff level and the number of hours estimated for the job in hand The staff levels thus indicated are P= Partner, M=Audit Manager; S=Senior; A=Assistant and J=Junior. The program therefore directs the staff to tasks commensurate with their skill levels and indicates the probable time (hours) required to complete each job. This is a very effective planning and control tool since field staff must progressively record actuals against budget which enables Audit managers to review progress#p#分页标题#e#
Audit "Work papers" may take both hardcopy (Paper) and soft (electronic) form. They will include copies of client records as well as auditor generated records. They must all be fully labelled indexed and dated and their provenance indicated. Work papers are costly to prepare so each one must fulfil a defined purpose. Since they contain client information they must be treated as absolutely confidential.
Audit working papers prepared in satisfaction of the programmed work must clearly state the objective and what work was actually performed, if for some reason a required task could not be completed the papers must say so and give the reason. Conclusions as to satisfaction or shortfalls are to be given for each phase of the job.
There will inevitably be queries to resolve and these should be clearly indicated on some distinctive form of working paper (Point Sheets) together with notes as to their resolution.
It makes for consistency if a standard type of stationary is used. The following two (abbreviated) samples are typical.
Standard Work Paper - general purpose stationary
Client:http://www.ukassignment.org/daixieEssay/Essayfanwen/
Period/Yr End W.P #
Prepared By:
Date:
Subject:
Remarks:
Reviewed by:
**********************
Point Sheet - used for scheduling queries and their resolution on any part of the audit
Client:
Period/Yr End W.P #
Prepared By:
Date:
Subject:
# Matter (Q) Outcome (A) Cleared
Initials/Date
This part of the sheet is used
to list and describe a query This section is used to record the answer
or resolution of the query together with details
of the supporting evidence,
Remarks:
Reviewed by:
Naturally the actual papers used are full sized A4 . Samples are attached at the end of this document for you to Photo copy and utilise if you wish.
Typical Work Paper Hierarchy This is not a mandatory numbering scheme but a basic model I have used for a number of years - it is modified as needs dictate
References (Numbering) & WP description Comments
1000 Block - Audit completion
1100 -Partners final memo Notes any concerns and outcomes of interviews with client. Approves final audit report <2600>.#p#分页标题#e#
1200 - Managers final memo High level review with any recommendation to the partner
1300 - Seniors final memo Revue of Post Balance day events . Lists any unresolved concerns and significant items noted during the Audit. Suggests form of audit report ie Unqualified or qualified due to materiality (AASB1031) of any problems etc. Describes difficulties encountered and includes any suggestions for amendment to next years audit program.
1400 - Statement of Clients accounting . . Policies AASB1001
2000 Series - Annual Accounts
2100 -Balance Sheet <B/S> AASB101 & aasb110
2200 - P&L <P/L> AASB1018
2300 - Cash Flow AASB107
2400 - Notes to the Accounts
2500 - Directors Report
2600 - Audit report AUS702
2700 - Concise Report AASB1039
2800 - Clients Final Trial Balance
3000 Series - Assets Lead schedule agreed to Balance sheet <B/S>
3100 - Fixed (Non-Current)Assets AAS21, AASB1015, AASB1041
Lead schedule agreed to Balance sheet <B/S>
3110 - Land
3112- Roadworks UIG1055
3120- Buildings
3130 - Plant and equipment Could be several categories ie Mfg. Packaging etc.
3180 - Vehicles Executive, Sales staff, Delivery etc
3500 - Current Assets Lead schedule agreed to Balance sheet <B/S>
3510 - Cash http://www.ukassignment.org/daixieEssay/Essayfanwen/
3511 - Cash on Hand 3511/1 Petty Cash, 3511/2 Till floats etc
3512 - Cash at Bank _Current Acc Could be several - ie 3512/1 Head office account, 3512/2 Brisbane Branch Imprest acc etc. Prepare a separate schedule for each
3513 - Cash at Bank - Other Term deposits, security deposits
3514 - Trust Accounts WP should include nature of the trust (Solicitors, Travel Agent etc) together with details of any special requirements eg half yearly audit
3520 - Inventory AASB102 (Existence, Ownership, Value)
Lead schedule agreed to Balance sheet <B/S>
3521 - Raw Materials
3522 - Work in Progress (WIP) Include evidence of examination of costing methods
3523 Finished Goods May need several schedules where there are several branches or stock locations
3530 - Debtors Lead schedule agreed to Balance sheet <B/S>#p#分页标题#e#
May be of several varieties 3530/1 Trade, 3530/2 Staff Loans
3531 Copy of clients debtors aged trial . balance * See footnote on numbering
3532 Examination for bad & doubtful . . debts Look in the 90 days plus column and interview the Sales manager in depth very sceptically
3533 Details of confirmations
3600 Investments AASB128,140
3610 - Investments held for resale
3620 - Investments in Joint ventures AASB131
3630 - Investments in Associates AASB128
3700 Deferred Expenditure . . . (unexpired costs) AAS9, AASB1011,
3900 - Intangible Assets AASB138 Lead schedule agreed to Balance sheet <B/S>
3910 - Goodwill Remember only Purchased goodwill can be included AASB138
3920 - Patents Include details of patent – references, expiry date etc
3930 - Trade Marks
3940 - Copyright Includes software
4000 Series- Liabilities Lead schedule agreed to Balance sheet <B/S>
4100 - Term Liabilities
4110 - Mortgages
4120 - Leases AASB1008
4130 - Long service leave Provision
4400 - Current Liabilities
4410 - Bank Overdraft
4420 -Trade Creditors
4430 - Staff Entitlements
4431 - Annual Leave
4432 - Sick Leave http://www.ukassignment.org/daixieEssay/Essayfanwen/
4433 - Long Service Leave (current)
4440 - Provision for Taxation AASB112
4800- Contingent liabilities & . . Provisions AASB 137 #p#分页标题#e#
4810 - Warranty Service provision
4820 -
5000 Series- Equity Lead schedule agreed to Balance sheet <B/S>
5100 - Authorised Capital and Shares . in Issue by Category
5400 - Retained earnings Show movements year by year
5700 Capital reserves Reconciled annually
6000 Series - Revenue AASB 118
Lead schedule agreed to Profit & Loss <P/L>
6100 - Sales of product
6500 - Services revenue
6700 - Investment income
6800 Other Income
7000 Series - Cost of Sales Lead schedule agreed to Profit & Loss <P/L>
7100 - Purchases
7110 - Raw Material Purchases
7120 - Component Purchases
7130 - Finished Goods Purchases
7200 - Conversion Costs
7210 - Labour
7220 - Overheads AASB1019-13.1.4,5 & 6
8000 Series - Expenses Lead schedule agreed to Profit & Loss <P/L>
There will be dozens of accounts involved, allocate numbers as required can be convenient to incorporate ledger acc numbers
9000 Series - Taxation Lead schedule agreed to Balance sheet <B/S> Lead schedule agreed to Profit & Loss <P/L>
Detailed workings to be reviewed by the firms Taxation specialists Auditors have enough to do without alsotrying to be Tax experts AASB1020,
The above hierarchy is indicative of the papers typically found in a working paper file. Various other headings may be required and gaps have been deliberately left in the numbering system to accommodate work papers on such items. - Insert whatever additional headings may be needed.
* Where an individual schedule is long (for example a debtors listing) it is convenient to give the schedule a single number but indicate its length and individual page numbers eg
"Debtors list 3531- 1 of 17" …".3531.- 6 of 17" etc . This avoids the confusion caused by using various numbers for the same thing and allows the reviewer to conveniently check on the completeness of documentation filed.
When cross referencing work papers to supporting schedules etc you should not to rely on the use of a different coloured pen or print for the purpose . There are numbers of occasions when you need to use photo copies or to print out copies of computer files and colour coding is then usually lost. For example you might need to send material to an interstate office or perhaps you might need a copy for a lawyer. The best approach is to indicate reference numbers by using distinctive brackets. Angle brackets are easily identified as such. Eg <3130> , <3531- 4 of 17> , <3630> , <2100 B/S> etc. Do not however use brackets in the title box of the individual work paper itself, only to show linkage to or from other WPs.#p#分页标题#e#
A simple rule to follow to avoid confusion is that where a total is cross referenced to a lead schedule ie one 'higher up' the system or to the Balance Sheet or Profit and Loss indicate this by putting the <reference> below the total concerned. Where a value is supported by a 'lower' schedule indicate the <source schedule> in angle brackets alongside the entry.
To show this concept consider the following model as if an extract of a set of Work Papers
Balance Sheet 2100
$'000
……
Plant 795 <3130>
Vehicles 140 <3180>
…….
Plant 3130
$'000
Lathes 253 <3131>
Welding 12 <3132>
… …..
1739
Prov for Depcn 944 <3140>
$795
<2100>
Lathes 3131 Lathe -QQQ 3131/1
$'000 Sighted $'000
PPP 79 <3131/2> YYYYYY 85
QQQ 128 <3131/1> ZZZZZZ 43
RRR 46 <3131/3> $128
$253 <3131>
<3130>
This skeleton example links a work paper on a specific asset (Lathe QQQ) on WP <3131/1> via schedule <3131>to the Plant lead schedule <3130> and subsequently the Balance Sheet <2100>
The following diagram expands this concept.
Note how the network of Workpapers supports the values in the Accounts and therefore the auditors opinion. Each Item on the Balance sheet will be cross referenced to a work paper (lead schedule) which shows the total value shown for that Balance sheet item and is cross referenced to supporting schedules showing the detail of the work done and evidence gathered to support or refute the assertion.
A Lead Schedule may be supported by many subsidiary schedules giving specific details of documents sighted , conversations held, General ledger account details , cheque numbers, receipt numbers, invoice numbers, photo copies of agreements, photographs of stock or machinery, bank reference numbers, solicitors letters etc etc #p#分页标题#e#
The following sample Workpapers indicate the kinds of work typically performed
Client: Al's Emporium Ltd
Period/Yr end: 30/06/20xx WP No. 3131/1
Prepared: AD
Date: 29/09/20xx
Topic:
Lathe QQQ
GL Acc 7341
Supplied by - Simon Carves Engineering Ltd $
September 2006 Invoice 17938 Serial No 15645-9271A 84958
Enhancement increasing capacity from 170 units/hour to 350 units/hour Invoice 26419 Jan 2000 43040
$127,998
o Sighted suppliers invoices <3131>
o Checked serial Number
o Machine is still in regular use
o Discussed service life with chief engineer OK
o Maintenance expenditure during current year $15k seems reasonable in the circumstances
o Agreed to plant register <3149>
o Checked depreciation Calculation. Straight line basis
o Inspected lease expense - no apparent Sale/leaseback
o Checked bank and legal correspondence - no apparent encumbrance.
Having conducted the above audit procedures I am satisfied as to the existence ownership and value of the equipment
AllanD 29/09/20xx
Client:
Period/Yr end: WP No.
Client: Als Emporium Ltd
Period/Yr End 30/06/20xx W.P # 3131
Prepared By: AD
Date: 2/10/20xx
Subject:
Lathes
Lathe PPP $
o Verified from supporting vouchers and agreed to Plant register and GL Account 79,102 <3131/2>
Lathe QQQ
o Fully vouched - outcome OK 127,998 <3131/1>
Lathe RRR
o Verified from supporting vouchers and agreed to Plant register and GL Account 45,911 <3131/3>#p#分页标题#e#
$253,011
I am satisfied that the value of Lathes on hand is <3130>
complete and correct AllanD 2/10/20xx
Standard Work Paper
Client:
Period/Yr end: WP No.
Prepared:
Date:
Topic:
Remarks:
Reviewed by:
Point Sheet
Client:
Period/Yr End W.P #
Prepared By:
Date:
Subject:
# Matter (Q) Outcome (A) Cleared
Initials/Date
Form 20 – Point sheet
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