Auditing Exercise for Property Plant and Equipment - Assignment Example

Extract of sample
Auditing Exercise for Property Plant and Equipment

Management must implement the internal control activities to reduce the three inherent risk factors, management must implement the following internal controls procedures. The same audit objective includes reducing the risk factors by physically determining if management recorded all assets seen and affirmed by the auditor properly and completely in the proper accounting period. The inherent risk factors for item 1 and 3 are complex accounting issues (proper recording of property plant and equipment assets and allowance for depreciation), difficult to audit transactions (collusion between management and employees to fraudulently present Enron-style financial statements), and misstatements (unintentional errors) are detected (Whittington, 2005). ADJUSTING ENTRIES The auditor found the recommended adjusting entries for item 1 item 3 and after performing the audit procedure test of details of transactions or reconciliation. This is in compliance the auditor’s meeting the audit objectives. The auditor must obtain sufficient audit evidence to support all management assertions shown in the financial reports. Reconciliation entails the ensuring that detailed records have the same balances as the general ledger control accounts. ...Show more

Summary

Subject: Finance and Accounting ( 7 minute presentation) The property management process entails the proper recording of all acquisitions and disposals. The company must implement common control activities for the relevant assertions related to property, plant and equipment…
Author : ovandervort
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Auditing Exercise for Property Plant and Equipment"
with a personal 20% discount.
Grab the best paper

Related Essays

Methods of Auditing Construction Equipment Depreciation
The consumption of fixed assets over time and their diminishing value are referred to as depreciation. This paper will evaluate different substantive procedures necessary to be carried out in examining the mobile construction equipment and related depreciation.
4 pages (1000 words) Essay
Auditing
The current system is evaluated, and its flaws are identified. Suggestions for improvements are then outlined. Issues identified by the management letter do not need disclosure in the Financial Annual Report. Nevertheless, the letter reflects the recommendations and concerns of the auditor that he might have come across during the audit process.
3 pages (750 words) Essay
Auditing
The stakeholders include the shareholders, government, and the employees of the company. In the preparation of the audited report, the auditor has to be aware of the risk areas that can be changed to make the financial statements of the company look more appealing to the stakeholders of the company (Emerson, 212).The risk areas include the following, 1.
7 pages (1750 words) Case Study
AUDITING
The company manufactures sports equipment. Their main customers are private gyms as well as specified retailers. The information regarding the four items is retrieved from the trial balance that is dated March 31st 2011. The essay will address the four items listed identifying the extent to which they have been audited in order to review any audit problems.
8 pages (2000 words) Essay
Auditing
In the process, it is their duty to detect fraud or error. However, the auditor can fail to detect any errors or fraud due to Audit risk. Audit risk is the risk which occurs when an auditor expresses inappropriate audit opinion due to material misstatements (Kumar and Sharma 2006).
6 pages (1500 words) Assignment
Auditing
The net profit margin and gross profit margin are used in analyzing the profitability of an entity. The net profit margin and gross profit margins are used to evaluate the operating performance of a company (Pamela and Frank 2010). The net profit margin calculates the net profit as a percentage of sales.
4 pages (1000 words) Essay
Auditing
Similarly, managements have taken strategies to ensure accountability in the use of funds in order to create a strong positive relationship with the shareholders. One of practice that firms use to ensure reliable financial information is auditing. Auditing entails a systematic examination of records, financial performance, and statements.
6 pages (1500 words) Essay
Taxation
Furthermore, it equalizes the tax burden. The third reason is that taxation of savings is the boundary between the taxation of personal income and taxation of company
8 pages (2000 words) Essay
Samsung electronic corporate governance practices
f accountability and responsible corporate management, companies have continuously engaged in designing best management structures to improve corporate governance. Broadly, corporate governance refers to the processes and strategies by which corporate bodies are controlled and
4 pages (1000 words) Essay
Discuss the MBS market in the US
The Journal of Portfolio Management, The other journal is what Moves the Mortgage‐Backed Securities Market? Real Estate Economics journal and GSEs, mortgage rates, and secondary market activities. The Journal of Economics
9 pages (2250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT