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AOP(annual opreating Planning)

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Babasab Patil
Babasab Patil

AOP(annual opreating Planning)

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Auditing Operations and Completing the Audit
Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Relationships Between Balance Sheet and Revenue Accounts Relationship of Revenue to Balance Sheet Accounts Balance Sheet Item Revenue Accounts receivable Sales Notes receivable Interest Securities and other investments Interest, dividends, gains on sales, share of investee’s income Property, plant and equipment Rent, gains on sale Intangible assets Royalties
Miscellaneous Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Relationships Between Balance Sheet and Income Statement Accounts ,[object Object],Balance Sheet Item Expenses Accounts and notes receivable Uncollectible accounts and notes expense Inventories Purchases, cost of goods and payroll Property, plant and equipment Depreciation and repairs and maintenance Intangible assets Amortization Accrued liabilities Commissions, fees, bonuses, product warranty expenses, etc. Interest-bearing debt Interest
Substantive Tests for Selling, General and Administrative Expenses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Audit of Payroll ,[object Object],[object Object],[object Object],[object Object],[object Object]
Payroll Functions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Audit Program for Payroll ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Audit Program for Payroll ,[object Object],Substantive Tests Audit Objectives Perform analytical procedures Investigate fluctuations in payroll Obtain a summary of amounts of officers’ compensation and trace to authorization. Existence/occurrence Completeness Valuation Test compensation from profit-sharing or bonus plans. Test commission earnings Test pension obligations Valuation
Audit Procedures Completed Near the End of Field Work ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Loss Contingencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Loss Contingencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Loss Contingencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Subsequent Events ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Subsequent Events ,[object Object],[object Object],[object Object],[object Object]
Subsequent Events ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examples of Type II subsequent events Disclosure generally required Disclosure generally not required
Subsequent Events ,[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluating Audit Findings ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Required Communication With the Audit Committee ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Post-Audit Considerations ,[object Object],[object Object],[object Object],[object Object]
Post-Audit Considerations ,[object Object],[object Object],[object Object],[object Object]

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AOP(annual opreating Planning)

  • 1. Auditing Operations and Completing the Audit
  • 2.
  • 3. Relationships Between Balance Sheet and Revenue Accounts Relationship of Revenue to Balance Sheet Accounts Balance Sheet Item Revenue Accounts receivable Sales Notes receivable Interest Securities and other investments Interest, dividends, gains on sales, share of investee’s income Property, plant and equipment Rent, gains on sale Intangible assets Royalties
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