Professional Documents
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Statement of Financial Position - Sole Trader Statement of Financial Position - Sole Trader
Statement of Financial Position - Sole Trader Statement of Financial Position - Sole Trader
Statement of Financial Position - Sole Trader Statement of Financial Position - Sole Trader
ASSETS $ $ $
Non-current assets Land and buildings Office equipment Motor vehicles Furniture and fixtures Current assets Inventories Trade receivables Less: allowance for doubtful debts Prepayments Cash in hand and at bank Total assets
100,000 50,000 30,000 20,000 200,000 50,000 30,000 (2,000) 28,000 5,000 7,000 90,000 290,000 www.bp pbus iness .com
Capital Capital Profit Less: drawings Non-current liabilities Bank loans Current liabilities Bank overdraft Trade payables Accruals Total capital and liabilities
170,000 45,000 (25,000) 190,000 40,000 16,000 40,000 4,000 60,000 290,000 www.bp pbus iness .com
Audit Process
Plan the audit Understand entity Assess risk of material misstatement Respond to risk
Report to management Satisfactory Restricted substantive tests Full substantive tests Overall review of F/S Auditors report Report to management
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Authorisation Computer controls eg passwords Arithmetical accuracy - recalculation Bank / Control account reconciliations Segregation of duties Physical controls Personnel controls
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Auditors
Audit
External auditors
Internal auditors
Shareholders
Report to management
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Own
Company
Audit Opinion Accounts should give a fair presentation ie a true and fair view
...financial ...financialstatement statementare arefree freeof of material materialmisstatement misstatement An item is material if its omission or misstatement affects the economic decisions of the users of financial statements. Independent Independentopinion opinionon onthe thefinancial financialstatements statements enhancing enhancing credibility credibility
free of of material material misstatement misstatement free comply comply IAS IAS and and CA CA 2006 2006 not not subject subject to to management management bias bias
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Audit Report
Basic elements of the auditors report The auditor's report should include the following basic elements, normally in this order: (a) Title (b) Addressee (c) Introductory paragraph (d) Managements' responsibility for the financial statements (e) Auditor's responsibility (f) Auditor's opinion (g) Other reporting responsibilities (h) Auditor's signature (i) Date of the auditor's report (j) Auditor's address
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