tag:blogger.com,1999:blog-5726840133806680419.post4826352690379858698..comments2023-12-18T13:15:11.314-08:00Comments on Auditing & Accounting: #94- Auditing Creditors IIIKauditorhttp://www.blogger.com/profile/16370916862042809927noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5726840133806680419.post-180236449383170252010-12-20T22:44:26.771-08:002010-12-20T22:44:26.771-08:00Thanks for this post.Thanks for this post.John Papershttp://jobspert.com/interview-questions/noreply@blogger.comtag:blogger.com,1999:blog-5726840133806680419.post-67730343440714278572010-10-24T08:36:20.807-07:002010-10-24T08:36:20.807-07:00Hi Anonymous and Jian He,
Thanks for contributing...Hi Anonymous and Jian He,<br /><br />Thanks for contributing to the blog. You are right that , one audit procedures is not sufficient to capture the complete picture of the business. It's imperative to compare the fluctuations to our expectation, based on our understanding of the business.<br /><br />Nevertheless, variance analysis if one of the way need to be performed by the auditors, and compare the fluctuation to our expectation. Any differences need to be investigated.Kauditorhttps://www.blogger.com/profile/16370916862042809927noreply@blogger.comtag:blogger.com,1999:blog-5726840133806680419.post-83260841049622436602010-10-17T22:33:45.848-07:002010-10-17T22:33:45.848-07:00comparing the current and prior yrs is the fastest...comparing the current and prior yrs is the fastest way for auditor to determine if there certain areas to look at specifically. It is like sniffing for clues to look at.<br /><br />But at the end of the day, auditor still need to understand the company business environment to understand the risks that it is facing and use that to determine if the current figure does reflect the business environment the company is facing.<br /><br />Current and prior year is more for the preliminary analytical analysis during the audit planning stage. That is the most useful.Ong Jian Heemail: faithwish@hotmail.comnoreply@blogger.comtag:blogger.com,1999:blog-5726840133806680419.post-76891185891492603582010-10-14T14:08:49.507-07:002010-10-14T14:08:49.507-07:00i always believe that comparing current and prior ...i always believe that comparing current and prior year positions for balance sheet items may not give a reliable audit evidence on its own, unless its coupled with an analytical of the entire cycle. for example; payables, inventory and expenses. then maybe it will give better evidence.Anonymousnoreply@blogger.com