Dear Audit Junior, I am writing this letter to you to give you a better understanding of the planning and carrying out procedures in the areas of the non-current assets and inventory. I hope you are looking forward to joining the team and being involved in the audit of Brown Ltd. I hope this training document will give you a bit more knowledge and help you so you can get involved and have an idea of what you are doing. Firstly, I will begin to tell you a bit about auditing and why companies must be audited. An audit of a company's financial statements allows the auditor to form an opinion if the financial statements are prepared in accordance with the financial reporting framework. It is the auditor's job to provide an impartial view and they …show more content…
Some examples are tangible fixed assets; these are things like property, equipment’s, motor vehicles and land, then there are long term investments which are held by the company, such as bonds and stocks. Intangible assets such as goodwill. You must check if there is a non - current assets register which is very important as it allows you to identify assets. The differences between the actual assets, general ledger and the non - current assets registers are evidence that the assets are completely recorded. Tangible …show more content…
If you feel that you have gained a good impression of the values of the inventories it will help you in the future if you are doing the audit for them as you will be able to judge the figures that are on the financial statements. After you have carried out your inventory count you need to report if the valuations agree. You must make sure all your count records are included in your final inventory sheets. If the company's use continuous counting, make sure that all the records have been adjusted to how much was physically counted. If there are variances, you must investigate these. Where you received correspondence from third parties holding inventory you must review these and ensure they are included. The final job you have is to consider any queries and confront Brown Ltd management about and problems