Geography & History Notes | KCSE, NECTA, ZIMSEC & GCSE

  The emphasis of the matter paragraph and the other matter paragraph are regulated by international standards on auditing (ISA) 706 Meaning Of The Emphasis Of Matter Paragraph this is the paragraph that is included in the auditor report that refers to the matter appropriately presented or disclosed in the financial statements , that in auditors judgment is of such importance that it needs to be communicated to the users of the financial statement in other words, the emphasis of the matter paragraph is the paragraph added by an auditor in his report in which the auditor repeats the matter that management has already correctly stated in the financial statement. The auditor shall do the following when he includes the emphasis of matter paragraph in the auditor's report it will be set in a separate section of the auditor's report the auditor should use appropriate heading to refer to the other matter paragraph including using the term 'emphasis of matter' auditor should ...

  The following test should be carried out on the bank reconciliation Obtain standard bank confirmation from each bank with which the client conducted business during the period. Test arithmetic of bank reconciliation by recasting. Trace cheques shown as outstanding from the bank reconciliation to the cash book prior to the year-end and to the after-date bank statements and obtain explanations For any larger or unusual items not cleared at the time of the audit. Verify by checking paying-in slips that uncleared banking are paid in prior to the year-end and review whether uncleared banking are cleared quickly after the year-end. Verify balances per cash book according to the reconciliation with cash book and general ledger. Verify the bank balances with reply to standard bank letter and with the bank statements. Scrutinize the cash book and bank statements before and after the period-end for exceptional entries or transfers which have a materials effect on the balance shown to be in...

  Independent audits are important for inspiring and maintaining users' trust because they demonstrate that the organisation is committed to financial transparency and accountability. It helps the management in the detection of errors and fraud It helps the management in obtaining loans from banks and other financial institutions as the audited statements are relied upon. It builds up the reputation of the business. Auditors can give concrete suggestions regarding the improvement of business on the basis of their findings in the record. Audited financial statements help the board of directors have more confidence in the organization’s financial statements because they are based on an analysis by an objective third – party. RELATED POSTS 9 CONDITIONS FAVOURING IRRIGATION FARMING IN EGYPT 5 CAUSES OF RURAL-RURAL MIGRATION IN KENYA 10 AIMS OF KILOMBERO VALLEY IRRIGATION SCHEME 4 FEATURES OF MAP STATEMENT SCALE 10 ADVANTAGES OF OIL PRODUCTION IN THE MIDDLE EAST 7 DISADVANTAGES OF AIR T...

  Auditing is the independent examination of financial statements or any other subject matter in order to give the assurance that the financial statement complies with the acceptable financial reporting framework In many countries, auditing is mandatory to companies listed on the stock exchange authorities and is required by many banks when companies are seeking loans The following is the importance of auditing to the economy of any country it increase the faith of investors who want to invest in companies Auditing provides reasonable assurance to the users of financial statements that the financial statements have no material misstatement which can lead to the wrong decision to the user. One of the key users of financial statements are investors who want to invest their capital in companies. When investors know that the independent third party (auditor) have given an unqualified opinion on the financial statement then they will easily be convinced to invest their money in the comp...