nsibilities of the Client Management, Corporate Director and the Company Auditor
The client management is composed of the people from the auditing firm who are responsible for ensuring that the work carried out meets the quality standards of both the firm and the client. They are responsible for appointing the quality assurance personnel who review the work performed by the external auditors to ensure that it meets all standards (MW&A 2016). In regards to internal controls, they are responsible for validating transactions processed through the internal control system. The corporate directors are those individuals charged with governing the company (ACCA 2009). They are directly responsible for coming up with standards followed in the organization. …show more content…
By appointing different people to handle different activities, the risk of fraud reduces. The person who is responsible for receiving the requisition from the customer is different from the person responsible for shipping and recording the sale and is different from the person receiving the cash. If an error occurs, it is easy to trace its origin (Office 2010).
Activity 2: The sales order, shipping notes, delivery dockets and sales invoice are all pre-numbered. Pre-numbering ensures consistency of recording of transactions. If a transaction has occurred, it must appear in all the documents in chronological order. If one document’s number is not in other documents, an investigation is carried out to determine the reason for the same (Mark 2006)
Activity 3: The bank reconciliation of the company is carried out monthly by an independent accountant. The activity ensures noting of any transactions recognized by the company and in case of fraud, detecting and reporting for action (Mark …show more content…
Key Assertions of Each Control
Activity 1: The key assertions for this activity include occurrence, completeness, and accuracy. The officers of Caroma will ensure that only recording of transactions that occurred and that the recorded amounts reflect the true amounts of the transactions (Office, 2010).
Activity 2: The key assertions include cutoff, occurrence, and existence. Pre-numbering ensures that all transactions recorded occurred, recorded at the right period. No transactions belonging to current period are recorded in the future period (ACCA 2009).
Activity 3: The key assertions are completeness, occurrence, rights, and obligations and cut off. Reconciliation ensures that all entries made are complete and they occurred in the period which they ought to have occurred. Reconciliation further ensures that the transactions recorded belong to the organization (Mark
The client management is composed of the people from the auditing firm who are responsible for ensuring that the work carried out meets the quality standards of both the firm and the client. They are responsible for appointing the quality assurance personnel who review the work performed by the external auditors to ensure that it meets all standards (MW&A 2016). In regards to internal controls, they are responsible for validating transactions processed through the internal control system. The corporate directors are those individuals charged with governing the company (ACCA 2009). They are directly responsible for coming up with standards followed in the organization. …show more content…
By appointing different people to handle different activities, the risk of fraud reduces. The person who is responsible for receiving the requisition from the customer is different from the person responsible for shipping and recording the sale and is different from the person receiving the cash. If an error occurs, it is easy to trace its origin (Office 2010).
Activity 2: The sales order, shipping notes, delivery dockets and sales invoice are all pre-numbered. Pre-numbering ensures consistency of recording of transactions. If a transaction has occurred, it must appear in all the documents in chronological order. If one document’s number is not in other documents, an investigation is carried out to determine the reason for the same (Mark 2006)
Activity 3: The bank reconciliation of the company is carried out monthly by an independent accountant. The activity ensures noting of any transactions recognized by the company and in case of fraud, detecting and reporting for action (Mark …show more content…
Key Assertions of Each Control
Activity 1: The key assertions for this activity include occurrence, completeness, and accuracy. The officers of Caroma will ensure that only recording of transactions that occurred and that the recorded amounts reflect the true amounts of the transactions (Office, 2010).
Activity 2: The key assertions include cutoff, occurrence, and existence. Pre-numbering ensures that all transactions recorded occurred, recorded at the right period. No transactions belonging to current period are recorded in the future period (ACCA 2009).
Activity 3: The key assertions are completeness, occurrence, rights, and obligations and cut off. Reconciliation ensures that all entries made are complete and they occurred in the period which they ought to have occurred. Reconciliation further ensures that the transactions recorded belong to the organization (Mark