Check over cash

control over sale

. Cash Receipts CASH PAYMENT
Sales Department Record in Sales
Acknowledgement Authorization Receiving Orders Book
Remittances Mode of Payments Acceptance of Filing Sales Order
Received Recording all Payments Order Sales Return
Deposits into Bank Blank Cheques Agreement Credit Note
Disbursement Spoiled Cheques Arrangement of Collection from
Purpose Statement of Accounts goods Customer
Bank Reconc Proofs of work done Arrangement of No Access to
Statment goods Record
Cash sale Preparation of Customer’s
Surprise Inspection Sales Invoice Enquiries
Dispatch of Goods Review of Work
INTERNAL CONTROL SYSTEM OVER PURCHASES Done
INTERNAL CONTRl DEPARTMENTAL STORE
Arrival to store
Purchase Department Checking of Purchase Depart Arrival to store
Purchase Requisition Invoices Organization of Goods Received Note
Quotations Recording of Invoice Purchases Quality Checking
Placing the Order Payment of Invoice Quotations Quality Checking
Purchase Contract Cash Book Entry Written order Recorded in Store
. Physical Inspection Review of Work Purchase Contract Ledger Card
Comparative Statement Done Limits Department and cashier
Returning the Defective Proofs of work Done Basis of Purchases Checking of Invoice
Goods Suggestions But not Purchase Book
Guarantee Payment
Discount
Purchases Return
QUALIFICATION OF AN AUDITOR DISQUALIFICATION OF AUDITOR

According to Companies ordinance 1984 a
person shall be qualified for appointment as
auditor of
(a) A public Limited Company
(b) A private limited company which is a
subsidiary of a public limited company
(c) A private limited company with capital of
three million or more
If he is a chartered accountant within the
meaning of the Chartered Accountant
Ordinance 1961
1 Any director, officer or employee of the company
(b) A person who was a director, officer or employee
of the company in preceding three years.
(c) A person who is a partner of a director, officer or
employee of the company.
(d) A person who is an employee of a director, officer
or employee of the company.
(e) The spouse of a director of the company (f) A
person who is indebted of the company

Right of Directors Duties of auditors

To Hold Office Certify the Statutory
Access book of Report
Appointment REMUNERATION account Prepare Report for
Auditor AUDITOR Call Further Prospectus
1 First Auditor 1 By Directors Information Annual Report
By Directors 2 By Shareholders Access to Books of Sign Report
By Shareholders 3 BY SECP Branches Obtain Information
By Security and Removal of Receive Notices Express Opinion
Exchange auditor Attend Meetings State Negatives with
Commission 1 Removal of First Read Report in Facts
2. SUBSEQUENT Auditor Meeting Assist the Inspector
APPOINTMENT 2 Removal of
3. CASUAL Subsequent
VACANCY Auditor
NEWSPAPER COMPANY TEXTILE COMPANY
Advertisement Income Material Consumed
Selling of old Edition By Products
Annual Subscription Verification of Stock
Printing Work Verification of General Sales
Prize Money Tax
Unusual Items
A CEMENT FACTORY
Quarry Rights
Distributors’ Commission
Packing Cost
Contract with Vendors

SPECIAL POINTS IN INSURANCE AUDIT OF A HOTEL SUGAR MILLs

BANK Company

Loan and Advances 1 Premium Visitor Ledger Farming

Securities Received Restaurant Bill Advances to
Balance with other 2 Loan To Purchases Farmers
banks Policyholders Room Rental Purchase of
Cash and Statutory 3. Commission Income Sugarcane
Reserve Payable Car Rentals Packing Cost
Zakat and Ushar 4. Annuities By Products
5. Re-insurance

TECHNIQUES OF
Common points VOUCHING
Qualities of Auditor
Investment: Arranged
Minute Book: PROFESSIONAL PERSONAL Vouchers
Payment QUALITIES QUALITIES Properly Dated
Outstanding Accounting Tactful Related to
expenses Business
Auditing Independence
Receipts Related to the
Tax provisions
Business Law Intelligent
Period
Agreement Taxation Law Patience . Amount of
Nature of Audit Company Law Leadership Voucher
copy of resolution Computer Ability to Plan Signature
Contingent Budget Qualification Paid and
liabilities Preparation Secrecy Cancelled
Maintenance of General Judgment Period of Payment
Depreciation Knowledge Diligent Properly
Make sure from Detector of Recorded
report Errors and Missing Voucher
Prepaid Expense Client Staff
Frauds
Alteration

TECHNIQUES OF TECHNIQUES OF
INVESTIGATION VERIFICATION Differ B.W audit and
Purpose 1 Physical Existence Accounting
. Instructions 2 Proper Valuation 1 Scope
Intimation to Auditor 3 Ownership 2 Nature
Preliminary 4 Verification of 3 For Whom Conducted
Arrangement Charge 4 Compulsory
Sufficient Staff 5 Proper 5 Duplication
General Information Authorization 6 Examination
Collection of Evidence 6 Proper Disclosures 7 Qualification
Enquiry About Staff 8 Rights and Duties
Consultation with 9 Status
Experts 10 Sequence of work
11 Work Programmed
ADVANTAGES OF DISADVANTAGES
AUDIT PROGRAMME
No Omission 1 Mechanical Advantages of Final Audit
Progress of audit 2 Not always
work Continues
suitable
Fixing of 3 Extra Activity
Responsibility 4 No Suggestion Early Detection of Economical
Transfer of audit 5 Protection to error Thread of Work
work inefficient staff Quick ratification Loss
Legal Proof of work 6 No detection of Detailed checking Convenient for
Done errors and frauds Proper attention Accounting staff
No Repetition 7 Overlooks New Early presentation of Minimum Time
Uniformity in Work Matters account No staff intimacy
Effective Control 8 Loses sense of Account Up to date Beneficial for small
Division of Work responsibility
Important Points Interim Dividend Business
9 Not
Training Tool Comprehensive Early Meeting Seasonal Industries
Audit Staff Auditor Advice For share Holder
Requirement Distribution of Work For Owner
Clear Cut Less chance of Guidance
Instructions Overlooking Check on Acc staff
Guidance Encourage Investment Improvement of
Increase in efficiency internal control
system
Primary Secondar Special
y
Accounting Detection Satisfaction
Policy of Error / Tax Authority
Fairness Fraud Loan Facility
statement Preventio Attract
Prescribed n of error Investor
Law and fraud Purchase
Independent Consideration
opinion Proper
Supervision
Prevention
Disputes
Among partner

Advantages Business To Owner To government or General public

state
Moral Check Satisfaction Easy assessment of No lender’s Loss:
Loan Facility Helpful for partner Taxes Better Pay
Business purchase Shareholder Early recoveries of Investor’s Satisfaction
Price Protection Taxes Employment
Economic Progress Opportunities
Tax Payment Deceased Estate
Privatization Training Facilities
Settlement of Dispute Fluctuation in Profit Purchase of Private
Correct information Making of Budget Business Units
about Business Valuable Advice

Statutory Report = Contents = 1-Financial Statements 2-Auditors Report 3-Directors Report 4-

Corporate Governance statement 5-Devidends 6-Operational Highlights