Report on Auditing the Financial Transactions of SBL (February 28th)

This report presents an audit of Sustainability Bank Limited (SBL), a retail financial institution. The audit focuses on the financial records of February 28th to ensure accuracy and validity. The main body of the report outlines the audit assertions tested, including existence, completeness, cutoff, and dis...Read More

AUDITING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Audit assertions and objectives tested.........................................................................................1
Procedure utilised to achieve audit objectives.............................................................................1
Outcome of audit procedure........................................................................................................2
Further audit implications............................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Audit is the official inspection of company’s accounts and all records. Audit report aids
in ensuring that all statements are accurate and valid (Tang, Norman and Vendrzyk, 2017).
Present study is based on Sustainability Bank Limited (SBL) which is a retail financial institute
that offers standard services to consumers. Current report will generate active data sheet and will
review records of 28th February in order to ensure its accuracy.
MAIN BODY
Audit assertions and objectives tested
Assertions Explanation
Existence To find evidence of existence of all
transactions at particular given date
Completeness To ensure all transaction’s withdrawal,
transfers, clearance of deposits of all accounts
and whether there is any kind of missing
number or not that may cause issue in net
cash
To ensure that on 28th February 2018, there
was no unrecorded cash
Cutoff To obtain cutoff statement from bank to
ascertain to ensure that whether items of
reconciliation are cleared by bank or not
To verify that all amounts are recorded
correctly
Disclosure and presentation To match the cash balance and related entries
according to accounting standards
Procedure utilised to achieve audit objectives
Audit was done by considering volume and nature of all transactions. In order to conduct
audit in XYZ branch, various procedures were implemented. It includes inspection of all entries
of day, confirmation by looking at receipts, recalculations and analytical process. In addition,
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query sheet has been used to match the cash balance and related entries (Zadey, Chafle and
Lilhahre, 2016). Receipts have been collected to ensure whether items of reconciliation are
cleared by bank or not. In order to ensure that there is no unrecorded cash, auditor of SBL
limited has prepared merged summary to ensure account number of all customers with their
related transactions. By this way, cash balance and all transaction calculations have been
confirmed. Merger joint sheet has been prepared in which account number, count and total
amount are verified.
In order to find out the actual frequency of all transactions, auditor has run query. This has
helped in merging all data and find out particular account no, transaction amount of particular
date. It has been found that 212001 has made 55 transactions of 28 Feb. In this many were
withdraw, deposit, fixed deposit related transactions. Furthermore, 363005 account had 115
transactions on the same day with amount of 47695.Thus, query has helped in finding a clear
sheet of total transactions, account no and amount. By this way errors can be identified by
comparing it with actual receipts.
Outcome of audit procedure
This process has supported in identifying whether there is any kind of misstatement or
not. By this way, auditor of SBL limited has become able to recognize unrecorded entries due to
which malfunction has occurred. By this way, it has been identified that how many times
transactions have been done with different consumers (Active data for excel in audit for bank,
2017). By using active data excel, each transaction has been reviewed closely and these have
been checked against general accounting records. Account reconciliation has been done properly
by using this process. It is found that there is no duplication of query. By using merge and quarry
options, it has been find out that account number 212001 has made 55 transactions on that day
and all the records have receipts.
Further audit implications
Data analytics can be used in order to conduct in-depth control testing and substantive
testing of transactions by SBL limited. By using this analytical tool, auditor would be able to
review entire population at single time and this will enhance the accuracy in audit report. Use of
duplication will be beneficial in order to find out duplicate entry and removing it so that records
can be matched.
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CONCLUSION
From the above study, it can be concluded that audit plays a significant role in company.
It helps in identifying the transaction errors and resolving such issues. It has also been assessed
that all the entries and records are correct and it is ensured that there was no unrecorded cash.
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REFERENCES
Books and Journals
Tang, F., Norman, C. S. and Vendrzyk, V. P., 2017. Exploring perceptions of data analytics in
the internal audit function. Behaviour & Information Technology. 36(11). pp.1125-1136.
Zadey, S., Chafle, S. and Lilhahre, A. S., 2016, April. Analysis of various parameters by energy
audit. In Communication and Signal Processing (ICCSP), 2016 International Conference
on (pp. 1560-1564). IEEE.
Online
Active data for excel in audit for bank. 2017. [Online]. Available through:
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ab.3..33i21k1j33i160k1.357393.357393.0.357945.1.1.0.0.0.0.506.506.5-
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