audit

taskey

must be me, but i am reading and re-reading this audit mock and i have no clue.

it is all just very vague and getting on my nerves as i am reading my course notes and books to try and assemble an answer.

anyone else feel like this on this subject?

Tracy

PGM

Its a bit baffling for non audit people, you have to look past all that auditor speak and just like the Direct Line advert; fine out "whats really going on here".

taskey

so with my inspector cluzo hat on-
i have managed to get 3 points for payroll
1-high turnover of staff, ensure all PAYE, NIC and benefits are correct
2-payroll is ran before authorisation - this should be changed
3-payroll at the moment is checked from timesheet to wage slip to make sure no-one is missing - should be timesheet to personnel/hr records to ensure person still works there

but the 3 points for the debtors is baffling. there are "a few problems with bad or doubtful debts" is the only thing i can see, the scenario is simply explained and there is not much detail. contracts are in place, invoices are done on a monthly basis by sage, therefore sales daybook and sales ledger are updated automatically, payments are received by standing order a month in arrears. they are entered on a monthly basis and any other payments are entered once received.

any ideas??

Tracy

Rinske

Have you checked a few invoices to see if they add up? Or did they actually send the goods?

Be suspicious, not just put the inspector cluzo hat on, but look for any possible thing that you think might be wrong and check it!

Sorry, that's how I did my audit unit in the end, just think of everything that can be wrong, pick the ones you think most likely to go wrong, check them a lot and check the rest in little bits.

taskey

thanks, but my mock is based on a company who supply security guards. no physical goods. i am slowly getting there, but i think i am looking for something that is not there, i am looking for major concerns or controls, but cannot find anything which is maybe why i am finding it so frustrating.

oh well...back to it

Rinske

oooh services, even better, how do you check they did the service? Is there some check that the customer area exists? Is there a check that the employees showed up in time and did the full shift? Do the invoices add up? Are there any missing numbers? If so, why?
Check why some invoices are cancelled or credited. Check some invoices around start and end of the year to see if they are in the right period.

Although those are more detailed checks.

For controls, have a look at the procedures for any weaknesses, but they might just have really good controls in place, leaving fairly little weaknesses, in which case your risk level is low, compared to other parts.

Go put yourself in Steve's head and think of how he looks at the company...

Also, I found some of Glynis old post's with Steve answers on this subject are useful to give you some ideas!

Does that help?

Primble

i fall asleep reading the text book. just have no interest in it. but when unit 10 is signed off its just audit and dfs take 4 so i should get on. lost more heart when my tutor asked where a piece of paper was in my project then didnt reply for over a week coz she was on hol and didnt have an autoresponder on and no one checked her email

taskey

thanks Rinske that helps a lot