13. Note differences between bank and book balances and verify whether reconciling items are properly recorded in the books of accounts. 14. Prepare draft AO and discuss with management officials concerned before issuance.
- Check against Memorandum Receipts - Assist in the inventory-taking personally or by representative - Conduct inquiry/personal observation to satisfy oneself as to effectiveness of methods of inventory-taking and as to reliability of clients representations - Prepare reports as to results of inventory-taking observed Obtain copy of final inventory lists, trace test of inventory quantities - compare final inventory list with the inventory balances appearing in the Supplies Ledger cards maintained by the Accounting Division as well as the inventory balances indicated in the stock cards of the Supply Office. Note down differences. 6. Verify inventory valuation-test check basis of prices from purchase orders/delivery receipts. See whether ending balances were arrived at using the moving average method of valuation. Reconcile inventory report balances with balances appearing in the balance sheet
for traveling expenses. 3. Foot the schedule and trace totals to GL 4. Compare balances in SL and test accuracy of aging 5. Verify collections made after balance sheet date 6. Ascertain that AR represents valid claims against existing debtors 7. Determine validity of AR 8. Determine collectability of AR. 9. Confirm receivables -write positive or negative confirmation letter -jot down details and items that need to be clarified 10. For receivables in the nature of traveling advances, prepare demand letters for their liquidation in accordance with pertinent regulations. 11. Make an evaluation of results of work done 12. Prepare working paper and report Receivables are also important element in financial statements so it must be examined carefully by an auditor.
orders and other supporting information. 3. Vouch debits to cash disbursements or purchase returns memoranda. 4. Perform purchases cut-off test. Select sample of recorded purchase transactions from several days before and after year-end and examine supporting vouchers, invoices, etc. to determine that purchases were recorded in the proper period. Observe the number of the last receiving report issued on the last business day of the audit period and trace sample of lower- and higher-numbered receiving reports to related purchase documents and determine that transactions were recorded in the proper period. Perform cash disbursements cut-off. Observe the number of last check issued and trace to the accounting records to verify accuracy of cut-off, or trace dates of paid checks returned with year-end cut-off bank statements to dates recorded. Confirm accounts payable. On a sample basis, send confirmation requests to vendors with large balances. Investigate and reconcile differences. Determine that payables are properly identified and classified.