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Cost and Authorization - Auditing Process
The cost of building and land acquired while the year should be vouched to suitable documentation.These are contract of sale, surveyor's certificates and documentation, solicitor's accordance, cash book and in the case whether a loan was obtained correspondence with the bank.
The auditor might determine what the client considers to be cost. Whether the buildings have been constructed through the client, so the auditor might review completion certificates and costing sheets along with regard to internal materials and labor expended on the building as these are frequently overlooked. As we assume for authorization, such the auditor have to look to the director's minutes and to authenticate which the company's seal was required to seal the agreement of purchase.
(a) In order to draw reasonable conclusions, an auditor is required to identify and use audit procedures to gather audit evidence. You are required to identify and explain, five
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