How to Audit- Case Study Day 3

'How to Audit'

Fixed Assets

Participants will gain an understanding of the audit objectives to be proved and the evidence available for fixed asset testing.

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

Participants are given the client's fixed asset lead schedule, working papers and relevant invoices plus extractions from the minutes and the repairs and maintenance account, and physical verification schedule. They are required to audit the section updating the fixed asset register in the process. Several errors are discovered giving further experience in scheduling of potential adjustments.

Review of case study and any points arising.

'How to Audit'

Stock

Participants will cover the key issues concerning stock and how to effectively gather evidence to gain assurance on those areas.

Introduction to the audit of stock, objectives of the section and audit work. Emphasis is placed on the high risk nature of the audit area.

Stock-take attendance. Participants have the completed documentation for WJK Ltd on file and the procedure is discussed.

Participants will be given the results of a stock-take attendance and are expected to follow these through to the final sheets, investigating any errors.

Valuation. A short talk is given on valuation methods and audit work required. The case study will then be used to apply the appropriate method.

The content for 2021 may vary.