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Finance & Accounting
Pages 8 (2008 words)
AUDITING Name: Course: Professor: University: City and State: Date: Introduction The process of auditing requires an evaluation of the specified items to ensure that the report is aligned with the reality. This essay will attempt to do an audit of rent stock, liabilities and the receivables of Wentworth Brewster limited…
The paper will also indicate any recommendation on furthering the audit in case of an audit problem. Finally the paper will outline the actions following the further work done on the audit. Analysis of the Four Items Debtors During interim audit preparation, a list of who owes the company and the total amount they owe is drafted. According to the trial balance dated 31st March 2011, the amount expected from the debtors amounts to 950,000 pounds. During auditing, the expectation is that the schedule of debtors or the accounts receivables should always agree with the figures in the financial statements (Loughran 2010). Audit problems normally arise as a result of not taking into considerations the risks involved when dealing with accounts receivables. The accounts receivables that have been listed may be inaccurate. It is also possible that the receivables may not be existing or may not be collectible. The audit should consider the write offs of the bad debts. The sales transaction should always be processed at the right period to avoid recording of sales due the next period. ...
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