Auditing Theory and Practice - PDF

Added on - 21 Apr 2020

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Running head: AUDITING THEORY AND PRACTICEAuditing theory and practiceName of the studentName of the universityAuthor note
1AUDITING THEORY AND PRACTICETable of ContentsQUESTION 1.............................................................................................................................2Internal control for acquisition and disposals of the tangible non-current assets......................2QUESTION 2.............................................................................................................................4Suggestion for internal control testing procedure of the system................................................4Reference....................................................................................................................................8
2AUDITING THEORY AND PRACTICEQUESTION 1Internal control for acquisition and disposals of the tangible non-current assetsInternal control is a procedure that is impacted by the company’s management, trusteeboard and various other persons responsible for providing the reasonable assurance for theattaining the goals of the following –Compliance with the applicable regulations and lawsEfficiency and effectiveness of the operationsReliability of the financial reporting (Graham, 2015).Generally, non-current assets are the fixed assets that include plant, equipment,properties. In various organizations the internal control elements are considered as per theguidelines of the standards, if –Proper approval procedures has been followed for the capital expensesProper insurance coverage has been provided for the exposures of the assets.Depreciation has been calculated properly and provided properly for each periodThe useful life and the salvage value have been determined properly, if capitalized (ElGhoul et al., 2015).In the present competitive business scenario, the organization considers theprofitability of the business not just as the revenue function but also for the bettermanagement of the resources. Further, the fixed asset generally comprises of a considerablepart of total assets in any organization and thus it secures crucial part in the balance sheet.The important and effective management for fixed assets with regard to efficient internalcontrol are as follows –
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