How to Audit Your Account without Hiring an Auditor
19 pages
English

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How to Audit Your Account without Hiring an Auditor

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En savoir plus
19 pages
English

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Description

Most times there arises conflict as regards what auditors perceive as auditing and what users perceive as auditing. 

Users of financial statements feel that an audited account shows that the company has a clean bill of health; the company account is devoid of error, that issue concerns a public limited liability company. This book centres on small, medium scale companies. 

What kind of activity/activities is your company into? Don't worry; you don't need to panic about that. Audit fees are an expense that erodes the profit made in the period, most of the time, firms employ auditors because of errors, irregularities and fraud.

Audit fees are cost charged in the expense profile of a company and I want to let you know that this expense is avoidable because it's not statutorily required to have your account audited, but for accurate record system, auditors are employed but I tell you categorically that you can audit and examine your own financial records and account yourself even without an accounting, or finance background. 

This Company was your idea. The firm was financed and is being managed by you. So, in spite of your background, you are in charge. You know the staffs, you understand the technicalities of the business and that is why despite the harsh business environment, your firm is still above waters. 

So, you are in control. You may have delegated some sensitive aspect of your business to employees who possess the expertise especially the account/finance department. You can examine your records without bias or prejudice against any of your staff.

This books will help you to understand how financial operations should be carried out.

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Publié par
Date de parution 04 octobre 2018
Nombre de lectures 5
EAN13 9788829520954
Langue English

Informations légales : prix de location à la page 0,0010€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Exrait

How to Audit Your Account without Hiring an Auditor
By
Aaron Efuribe
Copyright 2018 by Aaron Efuribe.
For more information about the author, write to the author from aaronefuribe@gmail.com.
All rights reserved. Except for use in any review, the reproduction or utilization of this work in whole or in part, in any form by any electronic, mechanical or other means, now known or hereafter invented, including xerography, photocopying and recording, or in any information storage or retrieval system, is forbidden without the written permission of the author or the publisher.
Table of Contents
Title Page
Copyright Page
NATURE OF AUDITING
WHY CONDUCT AN AUDIT YOURSELF
HOW TO CONDUCT AN EFFECTIVE AUDIT
CONTROL SOME SPECIFIC TRANSACTION CYCLES
GENERAL FINANCIAL ARRANGEMENT
RECEIPTS
PAYMENTS
WAGES AND SALARIES
PURCHASE AND TRADE CREDITORS
SALES AND TRADE DEBTORS
STOCK (INCLUDING WORK-IN-PROGRESS)
FIXED ASSETS AND INVESTMENTS
NATURE OF AUDITING


A n appointed auditor defines Auditing as an independent examination and expression of opinion on the financial information of an enterprise in pursuance of that appointment and in compliance with any relevant statutory obligation and ethical requirement. An auditor is not an officer of the organization. He is an independent person who is appointed by owners of the enterprise to examine the account and determine whether the account is true and fair. Auditing is conducted in Nigeria only by qualified chartered accountants who must be members of the Institute of Chartered Accountants of Nigeria (ICAN). It is statutorily required that all public companies' financial statements are audited at the end of the company's accounting year. Auditing is borne out of the fact that incorporated limited liability companies be managed by persons separated and different from the owners. The managers are expected to render their account of stewardship to the owners. An account of how the owner's money was utilized is usually prepared annually and rendered in the performance of the business enterprise to the owners. The account called financial statement prepared by managers may be deliberately or inadvertently misleading or it may contain errors or fail to disclose fraud or it may fail to disclose relevant information. Therefore to lend credence to the account, owners appoint an independent person to look through and consider the account technical so as to determine how true and fair they are in relation to the underlying transaction, books and records.
Benefit of external audit actually, audit is a statutory requirement-it's a compulsory requirement. It's vital that all public companies - companies listed on the Nigeria Stock Exchange appoint an external auditor to audit its account. An audited account lays more credence to the management & shareholders. It's a basis for understanding the fact that management is judicially utilizing the fund of the owners. Audited financial statements are a summary of valid, accurate and completely processed transactions. This will enable the company to deal with investors, financial organizations, effectively and efficiently. An audited account gives the shareholder confidence that the management is financially disciplined.
WHY CONDUCT AN AUDIT YOURSELF


M ost times there arises conflict as regards what auditors perceive as auditing and what users perceive as auditing. Users of financial statements feel that an audited account shows that the company has a clean bill of health; the company account is devoid of error, that issue concerns a public limited liability company. This book centers on small, medium scale companies. What kind of activity/activities is your company into? Don't worry; you don't need to panic about that. Audit fees is an expense that erodes the profit made in the period, most of the time, firms employ auditors because of errors, irregularities and fraud. Let's explain this concept.
ERROR: These are unintentional mistakes in financial statements whether of a mathematics or clerical nature or whether in applications of accounting principles or whether due to oversight or misinterpretation of the relevant facts.
IRREGULARITY: these are intentional distortions or manipulation of financial statements for whatever purpose or for misappropriation of assets.

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