How to Audit- Case Study Day 2

'How to Audit'

Debtors

Participants will understand the various methods available to test debtors and the suitability of each in differing circumstances.

Introduction to debtors, objectives of the section and main audit areas.

Review of the possible analytical procedures which could be used in connection with debtors.

Debtors' circularisation. Participants reconcile circularisation replies using sales invoice listing, cash received after date and information on credit note provisions and bad debts. Participants complete the debtors' confirmation working paper and the confirmation results summary.

Introduction to audit of bad debts, consideration of cut off, credit note provision, other debtors and prepayments.

Completion of trade debtors' schedule, lead schedule, cross-referencing of whole section and completion of Audit Programme.

'How to Audit'

Creditors

Participants will understand the objectives which need to be proved when testing creditors and the ways to gather sufficient evidence.

Introduction to creditors, objective of the section and main audit areas.

Review of the possible analytical procedures which could be used in connection with creditors.

Creditors' statement reconciliation. Participants reconcile statements to the client's manual purchase ledger and complete the creditors' reconciliation working paper, summarise their results and draw a conclusion.

Working papers for the following areas are already on the participant's files and the audit work is discussed regarding cut-off, search for unrecorded liabilities, accruals and other creditors.

Leases and hire purchase. Explanation of the treatment under FRSSE via an example.

The content for 2021 may vary.