Audit Guidance - how to audit current account audit guidance

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					Audit Guidance - how to audit current account counseling audit

  current account audit guidance Subject
  practical work, some of the auditors on the audit of accounts between inadequate
attention. Mainly due to the many economic and business current accounts are not
directly reflected by income, costs, profits and other sensitive targets, and the current
account contents, miscellaneous items, frequent, difficult to obtain evidence, could
easily lead some auditors tend to use lazy way or avoid current account of the
examination, or sampling method with small samples between general audit the
accounts. How to guarantee the quality of audits under the premise of current
accounts to increase the efficiency of the audit is to complete an important part of the
audit. Therefore, I combine their audit experience, to talk about the current account of
the number of audit techniques and methods to encourage each hereby and colleagues.
  from the current account name in all secondary subjects to judge the accuracy of
current account accounting subjects, concluded on the current account audit focus
  calculation of accounts under current account of the nature of the details of all
current account Subject has a clear accounting of the object, that is, the content of
accounting courses and its name should reflect one correspondence relationship.
Accounting should be pointed object, otherwise the key areas are audited. Such as: a
breakdown of subjects between subjects an "other", "temporary hanging paragraph,"
"temporary income (pay) of", "transfer to other subjects," "arrears", "special section"
and not explicitly unspecified object; a breakdown between the subjects appear in a
number of subjects or individual losses are the same unit; and a breakdown of the
losses are subject nature of the current account with an accounting of the contents of
most incompatible with the other. Occur if the Audited accounts for more than
between these economic matters, should give full attention during the audit.
  special attention to changes in long-term lending changes do not occur sluggish and
sporadic large current accounts current accounts
  breakdown of different subjects have specific current account and the only economic
target, the contents reflect the This object is between the regular, relatively fixed
economic activities. Occurred only a few of a few or a long-term losses are after
business customers, we may credit crisis, exchange details of their subjects in the
natural reflection of the audit should be focused. It is worth focusing on is the
formation, change is possible with irregularities, illegal nature, may also bring some
risks. Such as concealing income, low cost sharing, lending, bank accounts, embezzle
embezzlement, huge bad debts, pump and other unlisted funds.
  compliance testing and substantive tests both reduce the current accounts of the
External Confirmation expectations
  audit and other accounting subjects are different, current account audit subjects that
meet the test has a strong dependence Even when the substantive test compliance test
must be used. Since the occurrence of subjects between the amount of class most of
the best cash and liquidity related to economic activities are mostly a lot of money
collection and payment process is the result of changes in current accounts. In a sense,
to manage the current accounts also manage the company's cash inflows and outflows.
Thus, a mature enterprise management usually more well-developed financial system
and capital return approval system, which system is on the current account an
important basis for the audit of internal control. With these major financial
management system to match, and some supplementary funds management system,
such as travel reimbursement system and use imprest system, material procurement
system, scrap recycling system and other physical assets, but also between subjects
with the occurrence of direct relations. Current accounts in the relevant substantive
audits should be in control of these systems for compliance testing. Current account of
the occurrence of the corresponding internal control system consistent with the
requirements of current accounts is to form a reasonable minimum requirement.
  strong emphasis on materials related to audit large and unusual transactions accounts
for the importance of circularization and External Confirmation as an important
method of substantive testing. But in the actual audit process, we found that current
account for the audit of the results are poor circularization. Main features: letter, was
extremely low (even zero); letter, the carrying amount and the amount of the audited
entity and does not indicate the reasons for inconsistent; possible by modern
communications and other units in the same tone; providing false false address; so.
The existence of these factors will inevitably greatly reduced the role of External
Confirmation, and highlights the use of alternative methods of auditing the accounts
of the importance of the exchanges. These alternative methods of compliance tests in
addition to the above should be: rigorous vetting the authenticity of all original
documents and rationality; combination of enterprise management characteristics,
management confirmed that current account of the truthfulness and legality; through
pre-and post exchanges account the increase or decrease the amount of transactions to
find out changes in the authenticity and legality of such. In other words, between the
accounts audit, to reduce the use of circularization and the use of surface and reduce
its expectations, focusing on the use compliance testing, and other substantive testing
procedures to reduce audit risk.
  to the parent company that occurred within the two units of current accounts, to be in
balance with the amount of the high degree of concern about these transactions
accounts is what we often say that the related party transactions. Because of internal
control and the control group's stake in the relationship between these related party
transactions are probably more vulnerable to all kinds of disciplinary infractions.
Mainly reflected in: cash in affiliate funds; manual adjustments margins; casual
lending funds; disguised embezzling company assets. These will lead to unprincipled
use of corporate funds, resulting in the loss of assets and the breeding of corruption,
and therefore the focus of current account audit content and high-risk areas.
  When the internal current account balance does not comply, the more exacerbated by
the risk. The author in the audit of a large current account business, and found that the
parent company "Other Receivables" account with a balance of subjects in detail a
small investment in a wholly-owned subsidiary of "Other payables" account balance
discrepancies between the Detailed subjects. The mother-child relationship in the
current account in-depth examination revealed a divorced parent company outside,
place the accounts, amounted to 1300 million yuan, its principal source of funds is
cash in a variety of items from the parent company's cash . Can be seen in a familiar
environment, easier to engage in the activities of some irregularities, the audit of the
association between the company and can not factor the company has been audited or
other units within the unit because it is the careless or complacent.
 current account with the details on some courses can take appropriate simplified
procedures to obtain a multiplier effect
 1. Usually, hanging in the "Other payments" subject in the Housing Fund, Social
Pensions, Social Manpower supplementary pensions, medical insurance and social
co-ordination is not some "tax payable" subject in tax accounting, the State
Administration of Fines, etc., hung in the "Other receivables" account of the tax
deposit, tax receipts deposit, the court's pledge money or property and land sector to
the land transfer, etc., these funds have their specific purposes, and subject to the
authority of the department's inspection and found. Therefore, these subjects in detail
the substantive audit, can be properly simplified.
 2. Hanging in the "accounts receivable", "accounts payable" and other subjects in
detail subjects, most of the main supply and marketing business object. If the main
object of these enterprises and current accounts, occurred even, often, large, clear
record book, and longer duration, the accumulated balance carried forward, you are
able to streamline the substantive audit procedures. Because such transactions are
benign exchanges, credit assured, however, except for related party transactions.
 3. For hanging in the "Other receivables", "Other payments" in the temporary
temporary temporary income payments, the amount of its small amount in a small
place, and the losses are targeted, may be appropriate to simplify the substantive audit
procedures. However, detailed subjects, if name hanging outside the unit when the
focus should be audited.
 4. "Receipts in advance" and "advance payment" amount and place of subjects such
as "accounts receivable", "accounts payable" and other subjects in detail the
relationship between subjects carry-over, indicating the economic and business related
the occurrence of a strong persuasive, it can be incorporated into the "accounts
receivable", "accounts payable" and other subjects in the corresponding audit, no
longer on these subjects to conduct audits.
 content of less concern between normal subjects
 detail account of the accounting transactions, there are some fixed laws of general
content. Such as: (1) the main transactions of goods and services typically accounts
payable and accounts receivable in advance to conduct pre-paid accounts to reflect the
contents of a large amount of money, frequent, more procedures, the external unit to
provide the characteristics of the original documents; (2 ) sporadic temporary
payment of provisional income is usually carried out in other accounts receivable
payable to reflect the contents of a small amount, the contents of a single, isolated
occurrence of multiple, procedures Shao, original supporting documentation provided
within the unit features; and (3) Accounts accounts payable and advance payment in
advance subject to the original nature of the business is extremely stringent
requirements of proof, that is related to the relevant provisions of the enterprise, but
also meet the rigid requirements of external departments, such as value-added tax
invoices, invoices and other transportation, and other Accounts payable subject to
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