L10_VerificationIII(PP%20Slides)

L10_VerificationIII(PP%20Slides) - AUDIT OF BUSINESS CYCLE...

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1 1 AUDIT OF BUSINESS CYCLE III 2 INVESTMENTS Internal Control – procedures for purchase, sale and custody – board approval – all transactions - recorded – segregation of duties – safekeeping, and in co’s name – regular check - existence 3 COMPLETENESS verify movements before and after y/e date - cut off income (e.g. interests, dividends) properly recorded 4 EXISTENCE inspect certificates third party confirmation of custodianship
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2 5 VALUATION obtain schedule of investments ensure correct b/f figures vouch purchases / sales transactions ensure correct accounting for gain and loss ensure bonus / right issues have been taken into account confirm to market value 6 INVESTMENT INCOME ascertain recognition basis consistency all income duly received 7 CREDITORS Internal control – authorisation – documentation of payments 8 COMPLETENESS obtain a schedule of creditors ensure accuracy agree with G/L review unprocessed invoices for items that
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This note was uploaded on 03/21/2011 for the course ACCOUNTING 110 taught by Professor Mcwilliams during the Spring '09 term at San Jose State.

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L10_VerificationIII(PP%20Slides) - AUDIT OF BUSINESS CYCLE...

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