Auditing for Accountant Students

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: PAET VI. AUDIT OF A BANK. We have now absolutely completed our manufacturing audit, prepared our statement, and submitted our balance sheet, together with the schedules of each item. The student should now take notice that the principles that govern an audit of this nature are exactly the same with any...
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Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: PAET VI. AUDIT OF A BANK. We have now absolutely completed our manufacturing audit, prepared our statement, and submitted our balance sheet, together with the schedules of each item. The student should now take notice that the principles that govern an audit of this nature are exactly the same with any other, only each particular business has its own peculiarities, and it needs an auditor to use his judgment, skill, and good sense to accomplish his work satisfactorily. The next audit we will study will be that of a bank. It is seldom that an auditor is called on to audit the affairs of a bank, since it is usually done by the State or National Banking Departments, but occasionally the authorities of the bank itself call in an independent auditor so as to satisfy themselves that the affairs are correct. Until very recently a bank examiner seldom or never reported to anyone outside the Banking Department anything in connection with the CASH. 79 audit, and unless he chose to inform the officers of the bank, no one connected with the institution was any the wiser for the investigation. At the present time, however, the reports are published, and consequently all the facts are made public and it is possible to form some opinion of the bank's condition. At this step it would be well to note whether the bank is a State or National institution, and find out the law governing the institution. It is not proposed to enter this audit with the amount of detail connected with our study of the manufacturing concern because, as stated above, the same principles govern. Immediately on receiving authority to take possession of the books, proceed to the receiving teller's department and count the cash to see whether it agrees with the amount called for by the receiving tell...