Append below the Purposes and Content Of Bank Confirmation Letter:
Purposes Of A Bank Confirmation Letter
To obtain confirmation of all bank balances of the company at year end
To ascertain any interest or charges to be accrued at the year end
To ascertain the existence of any assets held by the bank on the client’s behalf and whether […]
The auditor will need to be satisfied that the figure appearing in the balance sheet for trade debtors is all receivable. The auditor will have to be satisfied that an adequate provision had been made for all debts.
1.0 Obtain a detailed age analysis of the year end of debtors and test the analysis for a […]
The auditor will need to be satisfied of correct cut-off. Without a correct cut-of, sales can be overstated hence the need to perform the following cut off tests:
1.0 For the last invoices issued during the year and which have been included in the debtors;
the goods have been despatched;
the goods are not included in stock
2.0 All […]
A debtors’ circularization should be undertaken to obtain direct confirmation from the customer that the balance is correct.
The auditor should:
Obtain the client’s permission If this is not forthcoming, the auditor will have to decide if alternative procedure are available to […]
Append below, the audit work that is required to be performed by the auditor:
obtained a detailed list of balances;
agree the list to the ledger by testing a selection of the balances;
agree the list to the debtors’ ledger control account;
scrutinize the control account for unusual items and test a selection of the entries;
agree a selection […]
