Explain the steps in bank audit explain the procedure of checking of asset and liability liability
Answers
Answer:
The audit process can be broken down into the following stages;
STAGE 1- APPOINTMENT.
STAGE 2- RISK ASSESSMENT.
STAGE 3- AUDIT APPROACH.
STAGE 4- ADMINISTRATION.
STAGE 5- AUDIT TEAM BRIEFING.
STAGE 6- CLIENT SERVICE.
STAGE 7- CLIENT COMMUNICATION.
The verification of assets and liabilities involves the consideration of the following points:
That each asset/liability is correctly stated in the balance sheet.
That each asset/liability is correctly valued according to the generally accepted valuation principles.
Verification is usually conducted through examination of existence, ownership, title, possession, proper valuation and presence of any charge of lien over assets. Thus, verification includes verifying: The existence of the assets and liabilities. Legal ownership and possession of the assets.
Explanation:
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