Introduction. Audit of payments and settlements with employees is a relevant and widespread type of audit services. The purpose of the paper is to present in all essential aspects the concept of Audit of payments and settlements with employees, which can be applied in a practical environment to organize the audit process, as well as to improve the quality of accounting information, to correct violations and deficiencies and avoid possible financial sanctions. Results. The concept of Audit of payments and settlements with employees in the company, in our opinion, should describe the following main aspects: the purpose of the audit, subject and objects, audit tasks and sources of information, sequence of inspections, list of audit procedures and typical violations that may be identified during the audit. The purpose of the Audit of payments and settlements with employees is to confirm information on the completeness, accuracy, legality, accuracy of accounting and reporting, to confirm timeliness of payments to employees, taxes and fees, as well as to establish compliance with regulatory requirements. The subject of the Audit of payments and settlements with employees is the business processes and operations connected to the company's payments and settlements with employees, as well as the relationships that arise in the enterprise and beyond. Objects of Audit of payments and settlements with employees, in our opinion, should be divided into the following groups: elements of accounting policy; accounting operations; primary documents, accounting registers and reporting; information on violations of accounting, which are reflected in the documents of internal control, acts of inspections of state regulatory authorities, auditors' reports. An important aspect of the payroll audit concept is a list of structured common errors and irregularities that may be identified during the audit. Conclusion. The effectiveness of the audit and the impact of the audit on improving the quality of accounting information, eliminating violations and deficiencies, depends on the content of the concept used to conduct it. Show
 Page | 1 Problem 3-1 (IAA) 1.What are the attributes that make the information provided in the financial statements useful to the readers? a.Qualitative characteristics of financial information b. Quantitative characteristics of financial information c.Elements of financial statements d.Objectives of financial reporting 2.Qualitative Characteristics a. are considered either fundamental or enhancing. b.contribute to the decision-usefulness of financial reporting information. c.distinguish better information from inferior information for decision-making purposes. d.All of the choices are correct. 3.The fundamental qualitative characteristics are a.Relevance and faithful representation b.Relevance, faithful representation and materiality c.Relevance and reliability d.Faithful representation and materiality 4.Accounting information is considered relevant when it a.Can be depended on to represent the economic conditions and events that is intended to represent. b.Is capable of making a difference in a decision. c.Is understandable by reasonably informed users of accounting information. d.Is verifiable and neutral. 5.The ingredients of relevant financial information are a.Predictive value and confirmatory value b.Predictive value, confirmatory value and timeliness c.Predictive value, confirmatory value and materiality d.Predictive value, confirmatory value, timeliness and materiality 6.What is the quality of information that gives assurance that is reasonably free of error and bias? a.Relevance b.Faithful representation c.Verifiability d.Neutrality 7.Which of the following is the best description of “faithful representation” in relation to information in financial statements? a.Influence on the economic decision of users b.Inclusion of a degree of caution c.Freedom from material error d.Comprehensibility to users 8.To achieve faithful representation, the financial statements a.Must have predictive and confirmatory value. b.Must be complete, neutral and reasonably free from error. c.Are understandable, comparable, verifiable and timely. d.Must possess all of these. 9.The financial accounting information is directed toward the common needs of users and is independent of presumptions about particular needs and desires of specific users. a.Relevance b.Verifiability c.Neutrality d.Completeness 10. In the event of conflict between the economic substance of a transaction and the legal form, the economic substance shall prevail. a.Form over substance b.Substance over form c.Relevance d.Completeness Problem 3-2 (IAA) 1. The enhancing qualitative characteristics of financial information are a.Comparability and understandability b.Verifiability and timeliness c.Comparability, understandability and verifiability d.Comparability, understandability, verifiability and timeliness 2.Financial information exhibits consistency when a. Accounting procedures are adopted which smooth net income and make results consistent between years. b.Gains and losses are shown separately on the income statement. c.Accounting entities give similar events the same accounting treatment each period. d.Expenditures are reported as expenses. 3.When information about two different entities engaged in the same industry has been prepared and presented in similar manner, the information exhibits the enhancing qualitative characteristic of a.Relevance b.Faithful representation c.Consistency d.Comparability 4.The characteristic that is demonstrated when a high degree of consensus can be secured among independent measures using the same measurement method is a.Relevance b.Understandability c.Verifiability d. Neutrality Which qualitative characteristics of accounting information is reflected when user of information is able to depend on the information?Understandibility qualitative characteristics of accounting information is reflected when accounting information is clearly presented. As understandibility means that the information provided through the financial statements be presented in a manner that the users are able to understand it in the manner it should be.
Which qualitative characteristics of accounting information are reflected when accounting information meets the needs of the users in decision making?Understandability means it should be interpreted in the same manner as by other decision-makers. Therefore, Understandability is a characteristic of accounting information Which is reflect accounting information clearly.
Which qualitative characteristic of accounting information is depicted by verification of documents?Comparability-The last qualitative characteristic of accounting information is comparability. It is believed that it is not sufficient that the financial information is relevant and reliable at a particular time, in a particular circumstance or for a particular reporting entity.
What are the qualitative characteristics of accounting information?There are six qualitative characteristics of accounting information.. Verifiability.. Timeliness.. Understandability.. Comparability.. |
Which qualitative characteristic of accounting information is reflected when accounting information is backed up by source documents?
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