Part 3

Transcript

00:01

RECALCULATION

00:02

is a procedure that consists of checking the mathematical accuracy of documents or records

00:06

You will have to make appropriate calculations and verify the accuracy of the accounting records. For example, compute the depreciation to be charged for the year, by taking into consideration, the value of the asset (cost), the date of purchase, the rate of depreciation, etc., to verify the accuracy of the depreciation charged by the organization.

00:12

RE-PERFORMANCE

00:17

involves the independent execution by the auditor of procedures or controls that were originally performed as part of the entity’s internal control in the purpose of assessing if there are any difference between the auditor's work and the client's work, for example, re-performing the aging of accounts receivable

00:23

ANALYTICAL PROCEDURES

00:28

evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.

00:32

The purpose of analysis is to ensure consistency of accounting methods and also to evaluate the efficiency of the management by comparing the results of several years

00:38

The several analytical procedures are

00:41

- Reconciliation

00:44

- Ratio Analysis; and

00:49

- Variance Analysis

00:51

Analytical procedures conducted to help the management in decision making are

00:54

- Marginal Costing

00:57

- Standard Costing etc,.

01:03

You will have to study the nature of the business and also the prevailing circumstances and select the techniques to be applied. While conducting the audit, you may change your technique according to the changes observed in the circumstances

01:09

In simple terms

01:10

Auditing can be done by Checking documents, Official Records, Photos, by questioning staff responsible etc.

01:18

Let's Have a short 'HIATUS' (Short break) guys!!!!!!!!