Category Archive for: Audit of Specialized Industries

QUESTIONS AND ANSWERS

Your client is engaged in developing software for sale and for own use which take substantial time for development. Enumerate some significant risks and how the company may minimize the impact and likelihood of such risks Possible risks are: 1. Judgments are involved in identifying whether and when there is an identifiable asset that will generate expected future benefits.…

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CONSTRUCTION CONTRACTING COMPANIES

1. Keep in mind volatility of the construction industries. In boom periods the entities may be confronted with excessive construction work and consequent inadequate working capital, In recession, entities may be subject to going concern problem. 2. Ascertain general level of competence of management. 3. Discuss with management future prospects. 4. Ascertain accounting and internal control system. 5.…

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C. HOTELS

AUDIT APPROACH 1. Obtain knowledge of the business –  General level of economic acti it)’ –  Taxation policy – The market and competition – Cyclical or seasonal activity – Regulatory structure – Organization structure – Experience of operating management – Staging of accounting department – Attitude to internal control environment – Major suppliers – Financial…

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B. SUGAR INDUSTRY

AUDIT PROCEDURES 1. Verify cost of sugarcane procured. 2. Verify receipts and issues of process materials such as lime, sulphur, super – phosphate, caustic soda, filter cloth and other chemicals. 3. Compare wastage, spoilage, rejections of quantity and cost of sugarcane and other raw materials with previous year and inquire into unusual fluctuations. 4. Verify production and…

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AUDIT OF SPECIALIZED INDUSTRIES

Procedures discussed in this chapter are in addition to the normal verification procedures of assets and liabilities. BRIEF DESCRIPTION OF CERTAIN TERMS USED IN TEXTILE INDUSTRY Textile fabrics are built out of fibers. The quality of fibers influences the quality of the fabric Cotton is called dead fiber because it has little luster and elasticity. Wool is warm…

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