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15 views18 pagesShort-Term Liabilities Audit Guide
The document outlines the audit procedures for short-term liabilities, emphasizing the evaluation of current liabilities in accordance with GAAP. It details the objectives of the audit, including the verification of accounts payable and the assessment of internal controls. Additionally, it discusses inherent and control risk factors, as well as applicable audit procedures to ensure the accuracy and completeness of financial statements.
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0% found this document useful (0 votes)
15 views18 pagesShort-Term Liabilities Audit Guide
The document outlines the audit procedures for short-term liabilities, emphasizing the evaluation of current liabilities in accordance with GAAP. It details the objectives of the audit, including the verification of accounts payable and the assessment of internal controls. Additionally, it discusses inherent and control risk factors, as well as applicable audit procedures to ensure the accuracy and completeness of financial statements.
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FINANCIAL AUDIT II
LIABILITIES AUDIT TO
SHORT TERM
Dr. CPC. Asdrúbal Híjar Hidalgo
SHORT-TERM LIABILITIES
SHORT-TERM LIABILITIES
According to the Manual for the Preparation of Financial Information
(Resolution of CONASEV No. 103-99-EF/94.10 of November 26, 1999):
Current Liability
It consists of all the items that represent
obligations of the company whose payment must be made within
of the twelve (12) months following the date of the balance or of
normal course of the company's operations cycle.
The company whose operating cycle exceeds one year must
provide the corresponding clarification and estimate the amount not
demandable within the year and exclude it from current liabilities.
According to the General Accounting Plan E, Current Liabilities
understand
Taxes, counterperformances, and contributions to the system of
pensions and health to be paid
- Remunerations and participations payable -
-Accounts payable - Third parties
-Accounts payable - Related
-Accounts payable to shareholders (partners), directors and
-managers
--
AUDIT EXAMINATION TO
ACCOUNTS PAYABLE
OBJECTIVES OF THE EXAMINATION
The main objectives of the auditor when carrying out the review of the accounts for
the following amounts:
- Appropriately evaluate to verify if all current liabilities that
they represent the fundamental problems of the company, they are duly
accounted for according to the GAAP.
Determine if all current liabilities are presented in the statement of
financial situation, through the examination of each of the creditors.
Evaluation of the Internal Control System of current liabilities, to establish
the scope of the exam, select the sample to be investigated for
determine the evidence of truthfulness, legality, and accuracy of the operations of
short-term credit purchases.
In summary, the objectives of the Audit of Current Liabilities must establish the
security that:
Liabilities are recognized for the appropriate amount.
It must include all recognized transactions
They must understand all valid transactions that have occurred during the
period.
All current liabilities must be properly classified, according to the
PCGA and presented in the financial position statement.
They have fulfilled the internal control operations cycle in relation to
with the origin.
Registration and Accounting of Current Liabilities.
Assertion - Management statements
that are represented in various states
financial. They can be explicit or
implicit, and can be grouped into these
groups:
Existence or occurrence
That it is complete
Rights and obligations
Valuationanddistribution
Presentation and dissemination
Accounts Payable Commercial
When auditing this account, it is verified whether it meets the assertions of management.
regarding ownership, existence, accuracy, and valuation of the balances presented in the
Financial Statements at the end of the fiscal year. To determine that the balances are
reasonably presented in the Financial Statements, we will apply the following
audit procedures
1.- We will carry out the auxiliary reconciliation vs. General Ledger of the Accounts Payable Commercial.
We will send balance confirmations for accounts that exceed materiality, this
in order to obtain evidence that the presented balance belongs to the
Company and that the recorded amount exists and is accurate.
Obtained Results: We received the response to all the sent confirmations and
The third parties confirmed the same amount that is recorded in the books.
Conclusion: The balance of accounts payable is reasonably presented.
in the Company's Financial Statements regarding property, existence and
accuracy as a third party confirmed that the company owes him money and confirmed by the
amount recorded in the Statement of Financial Position.
2.- In the type of Company that we audit, the accounts receivable turnover is 90.
days, starting from this, the seniority of each account receivable was reviewed to
determine if there were accounts receivable over 90 days and if they were
they are provisioned as being unrecoverable.
Results Obtained: Accounts receivable older than 90 days were found.
days which management provisioned at 100% for being considered unrecoverable.
Conclusion: according to the results obtained, we can conclude that the balance of
accounts receivable is reasonably presented in terms of valuation as
Management estimated what it would not recover based on past experiences.
THE AUDIT CONDUCTED IN ACCORDANCE WITH
NORMATIVE FRAMEWORK (NAGAS, NIAS AND
PROFESSIONAL PRONOUNCEMENTS) IS DESIGNED
TO PROVIDE CERTAINTY
REASONABLE THAT THE FINANCIAL STATEMENTS
TAKEN TOGETHER ARE FREE OF
MATERIAL DISTORTIONS.
THE CONCEPT OF C.R. IS ASSOCIATED,
GENERALLY TO AUDIT EVIDENCE IN
THE NECESSARY DEGREE FOR THE AUDITOR
I HAVE COME TO THE CONCLUSION THAT THEY DO NOT EXIST
MATERIAL DISTORTIONS IN THE [Link].
TAKEN AS A WHOLE.
ALL AUDITS ARE PLANNED AND CARRIED OUT
WITH A SKEPTICAL ATTITUDE
PROFESSIONAL. THIS MEANS THAT THE AUDITOR
IT DOES NOT SUPPOSE THAT MANAGEMENT IS DISHONEST, NOR
IT DOES NOT REPRESENT HONESTY EITHER
UNQUESTIONABLE. THE NEED FOR IS RECOGNIZED
CARRY OUT A OBJECTIVE EVALUATION OF THE
CONDITIONS OBSERVED BY THE AUDITOR AND OF THE
EVIDENCE YOU GATHER TO FORM A
OPINION ON WHETHER THE FINANCIAL STATEMENTS
LACK OF ERRORS OR IRREGULARITIES OF
Relative importance.
ESTUDIO Y EVALUACIÓN DEL CONTROL INTERNO
Procedures to link the purchase, receipt, payment, and timely registration
of all liabilities for goods or services: request for quotations
that allow for an adequate selection, use of pre-ordered requests;
use of pre-ordered receipt forms; verification of the items
received against the purchase order; quality inspection, inspection and
verification of documentation; segregation of functions; oversight on
the settlement of liabilities; issuance of checks in a nominative form, etc.
Timely communication of contracts or agreements to the department
administrative.
As in the case of purchases, they would also apply to other liabilities.
inspection and verification procedures of documentation, surveillance
sobre la liquidación de pasivos, expedición de cheques en forma nominativa.
Approval of extraordinary movements by competent officials and
granting of powers to contract.
The existence of various levels of liability approval depending on their
amount or that imply limitations of availability for the company
about your assets.
Periodic comparison of the sum of the auxiliary accounts of collective accounts of
liabilities, against control accounts.
Adequate and timely estimation of legal obligations
contractual.
RISK FACTORS
Inherent Risk Factors
A detailed analysis of the information referred to the component
can allow identifying risk situations. The
new or significant transactions often represent
high risk areas.
Example of some of the inherent risk factors and their
implications for the component:
Risk Factor: A significant purchase has been made
that involves special terms or conditions.
Implications for the audit: Detailed analysis of the
transaction.
Risk Factor: One of the main suppliers was
owes a significant amount.
Implications for auditing: Increased efforts
necessary to obtain direct confirmation from the supplier
of the outstanding balances.
Control Risk Factors
The following are some situations and their
implications that may reveal control risks:
Risk Factor: The reconciliations of the listings of
Accounts payable with the general ledger are not processed.
in a timely manner or the conciliatory items are not
adequately investigated and resolved.
Implications for the audit: Increase in evidence
substantives to verify the related statements
with the accounts payable.
Risk Factor: Numerous payments have been made
duplicates to the suppliers.
Implications for the audit: Expand the scope of the
review of payments transactions to suppliers.
APPLICABLE AUDIT PROCEDURES
The audit procedures applicable to the examination of
passive, its nature, scope, and timing, are
conditioned by the greater or lesser degree of confidence that one has
the auditor in the internal control system and its characteristics
particularities of the company in question. They are mentioned in
The following are the most common audit procedures:
Confirmation of accounts and documents payable
Subsequent payments
Documentation review
Bank confirmation
Confirmation of lawyers and other advisors
Review of subsequent events
Review of deeds, minutes, contracts or any other
formal document stipulating the debt
It has been managed by the SOAS in the world since 1900.
Statement of Financial Position: 20% or more of the item/category.
Income Statement: 10% or more of Net Sales
1% or more of the Net Profit
If it is less, we remove it from the Report and transfer it to the Letter.
of Internal Control
Thank you very much