Sophia Fu

The accounting nature of inventory Inventory is an asset that is intended to be sold in the ordinary course of business. Inventory items call fall into one of the following categories: Held for sale in the ordinary course of business That is in the process of being produced for sale The materials or supplies intended …

Audit planning: How to audit inventory Read More »

Breakthrough hardware. Innovative software. Improvement of everyday life through technology. Similarly for auditing, incorporating technology is inevitable. If we embrace new technology, we believe that auditors of the future will play an increasingly important role in society. Such as bringing forward looking insight, trust and human judgement. Working hand-in-hand with but not replaced by technology. …

Next Generation Audit Read More »

To audit revenue, let’s first get an understanding of the types of revenue and the transactions directly associated with it. Understanding revenue Revenue is usually the largest single line item on the income statement, so the auditor needs to acquire a deep understanding of how the client generate sales. This can involve understanding the following: …

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Cash is an inherently risky asset. It can be easily misappropriated because: Individual transactions vary greatly in size Cash is the most negotiable financial instrument It can be used for unauthorized purposes Cash transactions may be posted to the wrong customer’s account or not recorded on a timely basis To minimize the risks stated above …

Audit of cash and bank balances Read More »

Anti-money laundering law is now an important issue for auditors to be aware of. Auditors must abide by the requirements of Ethics Pronouncement 200 (EP 200) Anti-Money Laundering and Countering the Financing of Terrorism – Requirements and Guidelines for Professional Accountants in Singapore. In this article, we will briefly list down the obligations and duties …

Duties of an auditor in relation to money laundering Read More »