Answer to Question #52914 in Accounting for Abdulla Sabit

Question

Narrate the duties of an auditor in connection with cash sales.

Answer 1

I. Assesses expense account, loans paid to employees, loans   made on insurance policies, cash receipts and account payment.
II. Checks calculations, accuracy of figures and postings involving business transactions posted by other workers.
III. Update cash handling rules for all payment receipt in the organization in a timely and accurate manner. This means that he or she   ensures that the norms governing payments are adhered to.
IV. Monitors cash handling for all payment receipt in the organization.
V. Scrutinizes accounts books and accounts systems for effectiveness efficiency and proper use of accepted accounting steps to record transactions.
VI. Gathers useful evidence and observes tests compares and confirms until he or she gains reasonable assurance. The auditor then creates an opinion of whether the financial statement is free of material misstatement due to fraud or error.