Overall checks means detailed checking of whole accounting records. All those activities that are useful for the auditor in detecting the errors and frauds are included in overall checks. Those errors that cannot be detected by routine checking these can be detected by over all checking. Account of books and information employees are the base for over all checks. It is the duty of the auditor that he should examine the reliability of such information.
BASE OF OVERALL CHECKS
Information’s collected from books of accounts and employees provide an essential base for overall checks. The auditor must examine the reliability of such information’s.
Total amount has been received from creditors or not, cannot be verified from routine checking. In such a situation, the auditor can depend upon overall checks and the auditor can confirm the balances by making correspondence with the creditors.
Interest or dividend has been received on investments, can be verified by preparing a list of investments under overall checks.
TECHNIQUES OF OVERALL CHECKS
The main techniques of overall checks are as follows:
1. Funds Flow Statement
2. Ratio Analysis
3. Inter firm Comparison
4. Capital Turnover Rate
5. Return on Investment
ADVANTAGES OF OVERALL CHECKS
The main advantages of overall checks are described in the following manner:
1. Overall checks avoid the shortcomings of routine checking.
2. Because of prevalence of effective internal control we can depend upon Balance Sheet Audit.
3. The advantages of continuous audit may be obtained.
4. Overall checks may be of great use in the integrated ‘system of ‘financial accounts’ and ‘cost accounts’.
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