Friday, February 23, 2018
07:02 AM (GMT +5)

Go Back   CSS Forums > CSS Optional subjects > Group I > Accounting & Auditing

Reply Share Thread: Submit Thread to Facebook Facebook     Submit Thread to Twitter Twitter     Submit Thread to Google+ Google+    
 
LinkBack Thread Tools Search this Thread
  #71  
Old Friday, January 04, 2013
mohsincima's Avatar
Junior Member
 
Join Date: Sep 2011
Location: Lahore
Posts: 18
Thanks: 10
Thanked 10 Times in 5 Posts
mohsincima is on a distinguished road
Default

can anybody work on past papers with me in Model Town Library, Lahore.... i confused about answers ......kindly contact at my email address in public profile...
Reply With Quote
  #72  
Old Saturday, January 05, 2013
Senior Member
 
Join Date: Apr 2012
Location: Nowhere ...
Posts: 353
Thanks: 444
Thanked 146 Times in 93 Posts
seher bano will become famous soon enough
Default

Can anyone solve this question??? (Adjusting Entries for Trading and P/L account)

On 1st January,1990, the Bad Debts Reserve appeared in the books of a firm at a figure of Rs.500. During the year Bad Debts amounted to Rs. 400 and Sundry Debtors to Rs. 15000. On 31st December 1990 a 5 per cent reserve for doubtful debts was maintained on sundry debtors. During the year 1991 Bad Debts amounted to Rs. 1000 and Sundry Debtors to Rs..20000. On 31st December, 1991, the Reserve for Doubtful Debts on Sundry Debtors was increased by 5 per cent and a 2.5 per cent reserve was maintained for discount on Debtors.

Required: Give necessary Journal Entries.

I am just confused about the bold statement and its entry.
Reply With Quote
  #73  
Old Wednesday, March 15, 2017
Junior Member
 
Join Date: Nov 2014
Location: lahore
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
hamad rafi is on a distinguished road
Default

thanks .. its really worthy for beginners
Reply With Quote
  #74  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

Hello
I need Auditing notes if anyone have then please share at abbass.fame@gmail.com
Reply With Quote
  #75  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

Fundamental Auditing Principles and Concepts

Auditing:
Auditing refers to a systematic and independent examination financial statements and underlying records (books, accounts, documents and vouchers) of an organization to ascertain whether the financial statements present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law

True and Fair View
True and fair view in auditing means that the financial statements are free from material misstatements and faithfully represent the financial performance and position of the entity.
Explanation
Although the expression of true and fair view is not strictly defined in the accounting literature, we may derive the following general conclusions as to its meaning:
True suggests that the financial statements are factually correct and have been prepared according to applicable reporting framework such as the IFRS and they do not contain any material misstatements that may mislead the users. Misstatements may result from material errors or omissions of transactions & balances in the financial statements.
Fair implies that the financial statements present the information faithfully without any element of bias and they reflect the economic substance of transactions rather than just their legal form.
Reply With Quote
  #76  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

Audit Assertions or Management Assertions
Management assertions or financial statement assertions are the implicit or explicit assertions that the preparer of financial statements (management) is making to its users. Financial statements include assertions related to the recognition, measurement, presentation, and disclosure of the financial information contained within such statements.[1] The role of the auditor in a financial statement audit is to obtain evidence as to whether management's assertions can be supported.[2]
The concept is primarily used in regard to the audit of a company's financial statements, where the auditors rely upon a variety of assertions regarding the business. The auditors test the validity of these assertions by conducting a number of audit tests.

Management assertions fall into the following three classifications:

Transaction-level assertions. The following five items are classified as assertions related to transactions, mostly in regard to the income statement:
•Accuracy. The assertion is that the full amounts of all transactions were recorded, without error.
•Classification. The assertion is that all transactions have been recorded within the correct accounts in the general ledger.
•Completeness. The assertion is that all business events to which the company was subjected were recorded.
•Cutoff. The assertion is that all transactions were recorded within the correct reporting period.
•Occurrence. The assertion is that recorded business transactions actually took place.

Account balance assertions. The following four items are classified as assertions related to the ending balances in accounts, and so relate primarily to the balance sheet:
•Completeness. The assertion is that all reported asset, liability, and equity balances have been fully reported.
•Existence. The assertion is that all account balances exist for assets, liabilities, and equity.
•Rights and obligations. The assertion is that the entity has the rights to the assets it owns and is obligated under its reported liabilities.
•Valuation. The assertion is that all asset, liability, and equity balances have been recorded at their proper valuations.

Presentation and disclosure assertions. The following five items are classified as assertions related to the presentation of information within the financial statements, as well as the accompanying disclosures:
•Accuracy. The assertion is that all information disclosed is in the correct amounts, and which reflect their proper values.
•Completeness. The assertion is that all transactions that should be disclosed have been disclosed.
•Occurrence. The assertion is that disclosed transactions have indeed occurred.
•Rights and obligations. The assertion is that disclosed rights and obligations actually relate to the reporting entity.
•Understandability. The assertion is that the information included in the financial statements has been appropriately presented and is clearly understandable.
There is a fair amount of duplication in the types of assertions across the three categories; however, each assertion type is intended for a different aspect of the financial statements, with the first set related to the income statement, the second set to the balance sheet, and the third set to the accompanying disclosures.
If the auditor is unable to obtain a letter containing management assertions from the senior management of a client, the auditor is unlikely to proceed with audit activities. One reason for not proceeding with an audit is that the inability to obtain a management assertions letter could be an indicator that management has engaged in fraud in producing the financial statements.
Reply With Quote
  #77  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

(Auditing) CE 2016

Question No.2

Internal Control and its Objectives

As we know Internal control means policies and procedures designed, implemented and operated by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

a. Effectiveness and efficiency of operations.
b. Reliability of financial reporting.
c. Compliance with applicable laws and regulations.
The first category addresses an entity's basic business objectives, including performance and profitability goals and safeguarding of resources.

The second relates to the preparation of reliable published financial statements, including interim and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly.
The third deals with complying with those laws and regulations to which the entity is subject. These distinct but overlapping categories address different needs and allow a directed focus to meet the separate needs.
As internal controls are not in use, therefore, we will perform other audit procedures to address the above mentioned control objectives.


Question No.3 Materiality
Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Determining Planning Materiality and Performance Materiality
When establishing the overall audit strategy, the auditor shall determine materiality for the financial statements as a whole. If, in the specific circumstances of the entity, there is one or more particular classes of transactions, account balances or disclosures for which misstatements of lesser amounts than materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements, the auditor shall also determine the materiality level or levels to be applied to those particular classes of transactions, account balances or disclosures. The auditor shall determine performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further audit procedures

Question No.4 Considerations with regard to IFRS while planning and performing audit
The auditor shall obtain understanding of the entity’s selection and application of accounting policies, including the reasons for changes thereto. The auditor shall evaluate whether the entity’s accounting policies are appropriate for its business and consistent with the applicable financial reporting framework and accounting policies used in the relevant industry. The Entity’s Selection and Application of Accounting Policies
An understanding of the entity’s selection and application of accounting policies may encompass such matters as:
a.The methods the entity uses to account for significant and unusual transactions.
b.The effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
c.Changes in the entity’s accounting policies.
d.Financial reporting standards and laws and regulations that are new to the entity and when and how the entity will adopt such requirements.
The auditor shall select samples and perform substantive procedures to ensure the compliance with applicable financial reporting framework.
Reply With Quote
  #78  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

he Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements
Effective for audits of financial statements for periods ending after December 15, 1991, unless otherwise indicated.

.01 The auditor considers many factors in determining the nature, timing, and extent of auditing procedures to be performed in an audit of an entity's financial statements. One of the factors is the existence of an internal audit function. fn 1 This section provides the auditor with guidance on considering the work of internal auditors and on using internal auditors to provide direct assistance to the auditor in an audit performed in accordance with generally accepted auditing standards.


[The following note is effective for audits of fiscal years ending on or after November 15, 2007. See PCAOB Release 2007-005APDF. For audits of fiscal years ending before November 15, 2007, click here.]
Note: When performing an integrated audit of financial statements and internal control over financial reporting, refer to paragraphs 16-19 of PCAOB Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements, for discussion on using the work of others to alter the nature, timing, and extent of the work that otherwise would have been performed to test controls.

Roles of the Auditor and the Internal Auditors

.02 [The following paragraph is effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004PDF. For audits of fiscal years beginning before December 15, 2010, click here]
One of the auditor's responsibilities in an audit conducted in accordance with generally accepted auditing standards is to obtain sufficient appropriate evidential matter to provide a reasonable basis for the opinion on the entity's financial statements. In fulfilling this responsibility, the auditor maintains independence from the entity. fn 2

.03 Internal auditors are responsible for providing analyses, evaluations, assurances, recommendations, and other information to the entity's management and board of directors or to others with equivalent authority and responsibility. To fulfill this responsibility, internal auditors maintain objectivity with respect to the activity being audited.
Reply With Quote
  #79  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default Auditing

Obtaining an Understanding of the Internal Audit Function

.04 An important responsibility of the internal audit function is to monitor the performance of an entity's controls. When obtaining an understanding of internal control, fn 3 the auditor should obtain an understanding of the internal audit function sufficient to identify those internal audit activities that are relevant to planning the audit. The extent of the procedures necessary to obtain this understanding will vary, depending on the nature of those activities.

.05 The auditor ordinarily should make inquiries of appropriate management and internal audit personnel about the internal auditors'—

Organizational status within the entity.
Application of professional standards (see paragraph .11).
Audit plan, including the nature, timing, and extent of audit work.
Access to records and whether there are limitations on the scope of their activities.
In addition, the auditor might inquire about the internal audit function's charter, mission statement, or similar directive from management or the board of directors. This inquiry will normally provide information about the goals and objectives established for the internal audit function.

.06 Certain internal audit activities may not be relevant to an audit of the entity's financial statements. For example, the internal auditors' procedures to evaluate the efficiency of certain management decision-making processes are ordinarily not relevant to a financial statement audit.

.07 Relevant activities are those that provide evidence about the design and effectiveness of controls that pertain to the entity's ability to initiate, record, process, and report financial data consistent with the assertions embodied in the financial statements or that provide direct evidence about potential misstatements of such data. The auditor may find the results of the following procedures helpful in assessing the relevancy of internal audit activities:


.08 If, after obtaining an understanding of the internal audit function, the auditor concludes that the internal auditors' activities are not relevant to the financial statement audit, the auditor does not have to give further consideration to the internal audit function unless the auditor requests direct assistance from the internal auditors as described in paragraph .27. Even if some of the internal auditors' activities are relevant to the audit, the auditor may conclude that it would not be efficient to consider further the work of the internal auditors. If the auditor decides that it would be efficient to consider how the internal auditors' work might affect the nature, timing, and extent of audit procedures, the auditor should assess the competence and objectivity of the internal audit function in light of the intended effect of the internal auditors' work on the audit.
Reply With Quote
  #80  
Old 3 Days Ago
Member
 
Join Date: Sep 2015
Location: Living with clouds.
Posts: 35
Thanks: 1
Thanked 2 Times in 2 Posts
Muhammadabbass is on a distinguished road
Default

Obtaining an Understanding of the Internal Audit Function

.04 An important responsibility of the internal audit function is to monitor the performance of an entity's controls. When obtaining an understanding of internal control, fn 3 the auditor should obtain an understanding of the internal audit function sufficient to identify those internal audit activities that are relevant to planning the audit. The extent of the procedures necessary to obtain this understanding will vary, depending on the nature of those activities.

.05 The auditor ordinarily should make inquiries of appropriate management and internal audit personnel about the internal auditors'—

Organizational status within the entity.
Application of professional standards (see paragraph .11).
Audit plan, including the nature, timing, and extent of audit work.
Access to records and whether there are limitations on the scope of their activities.
In addition, the auditor might inquire about the internal audit function's charter, mission statement, or similar directive from management or the board of directors. This inquiry will normally provide information about the goals and objectives established for the internal audit function.

.06 Certain internal audit activities may not be relevant to an audit of the entity's financial statements. For example, the internal auditors' procedures to evaluate the efficiency of certain management decision-making processes are ordinarily not relevant to a financial statement audit.

.07 Relevant activities are those that provide evidence about the design and effectiveness of controls that pertain to the entity's ability to initiate, record, process, and report financial data consistent with the assertions embodied in the financial statements or that provide direct evidence about potential misstatements of such data. The auditor may find the results of the following procedures helpful in assessing the relevancy of internal audit activities:


.08 If, after obtaining an understanding of the internal audit function, the auditor concludes that the internal auditors' activities are not relevant to the financial statement audit, the auditor does not have to give further consideration to the internal audit function unless the auditor requests direct assistance from the internal auditors as described in paragraph .27. Even if some of the internal auditors' activities are relevant to the audit, the auditor may conclude that it would not be efficient to consider further the work of the internal auditors. If the auditor decides that it would be efficient to consider how the internal auditors' work might affect the nature, timing, and extent of audit procedures, the auditor should assess the competence and objectivity of the internal audit function in light of the intended effect of the internal auditors' work on the audit.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Accounting Terms simple_sa_jalal Accounting & Auditing 7 Saturday, September 27, 2008 10:28 PM


CSS Forum on Facebook Follow CSS Forum on Twitter

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of CSSForum.com.pk (unless CSSForum.com.pk is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.