Scrutiny of Record for Audit Purpose

valuation of assets is the responsibility of management

the auditor can rely on a certificate issued by an authorized valuation as to the Valuation of assets in the balance sheet

the auditor should value the asset as per generally accepted accounting principle

valuation is no part of auditor’s duty

purchase invoices are independently matched with purchase orders and goods received Notes

goods received notes requires the signature of individual who authorized the purchase

routine checks are performed by internal auditor fortnightly

purchase function and production function are clubbed in one department

freehold land

plant and machinery

leasehold property

motor vehicles

examining cutoff points

matching entries in the sales book against renumbered sales invoices and goods outward notes

counting the number of invoices and matching the number with entries on sales book

both (a) and (b)

the person signing the Cheque should cancel the supporting documents

cheques should be signed by at best two persons

the data of payment of vouchers of similar nature should be the same or close to each Other

all of the above

Examining cutoff point

matching entries in the sales book against renumbered sales invoices and goods outward notes

counting the number of invoices and matching the number with entries on sales book

Both A and B

examination of property tax files

inquiry of plant manager

examination of debits to accumulated depreciation

all of the above

it invoices substantiation of occurrence of transactions

its objective is to establish existence, ownership, possession, valuation and disclosure of Assets

the auditor has to form an opinion on different aspects

all are true

modify his audit report

insist it should be disclosed in the notes to financial statements

write it in letter of weakness

Both A and C

purchase orders

sales orders

sales invoices

bill of loading