Overall Checks

by Administrator   |   0 Comments  |   142 Views    |   0/5 Rating   |   Print This Article
833 articles online.
Sep 20th, 2011
Send to friend

OVERALL CHECKS

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.

EXAMPLE
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’.

Article Source: http://www.informationbible.com/article-overall-checks-111907.html

Add New Comment

• A few essential tips about the bookkeeping adelaide facts

  Running a business is not simple. Additionally, accounting indeed, for a little business could be an immense undertaking. More >>

• Avail best dissertation writing assistance

  Dissertation is a study based requirement which student of higher educational degree course is required to write for the conclusion of their degree program. More >>

• Try to make carrier with crane driver training

  Crane preparing might be the pathway to an electrifying and remunerating vocation. Right away, you may be stating you have caught this portrayal had an association with different varieties of diverse businesses and callings. More >>

• People are attached with coaching and mentoring sydney

  Guiding and tutoring are notorious limit constructing instruments, particularly in the range of authority advancement. More >>

• Polymer materials

  Polymers are high molecular mass compounds whose structure is composed of a large number of simple repeating units. More >>

• Barter system

  Barter System - Barter System is that system in which goods are exchanged for goods - Barter System More >>

• Objectives of business

  Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. More >>

• Functions of money

  Functions of Money - Functions of Money as a Medium of Exchange, Measure of Value, Deferred Payment, Store of Value - Functions of Money More >>

• Importance of business in the present day world

  The importance of business is that it provides products or services to customers. More >>

• Kinds of partners

  The partners of a firm are broadly divided into three main categories. General Partners, Special Partners and Other Partners. More >>