Auditing (Audit)

This cycle can be divided into two main areas: Financing function: where does the company get its money from? The raising of finance could take the form of issuing share capital to fund the business, or borrowing money from shareholders or a financial institution in order to get the finance needed to run the business Investment function: what does the company do with its money? Normally a company will invest in property, a premises from which to operate, or other fixed assets that are necessar...

Salaries and wages are an integral part of any manufacturing concern, and more so for those companies that provide a service. Often overlooked the payroll and personnel function could be said to be even more important than the cycles described in the previous units. Happy staff normally result in the work being done efficiently and effectively, in addition staff loyalty is often stronger in companies where staff are looked after compared to those where staff are treated as just another number.

In this Unit we will be taking a closer look at the acquisition and payments cycle, and what makes up their component parts. We will also be looking at the different types of controls that companies put in place during the different stages of the acquisition and payments cycle that could have an impact on the amount of substantive audit procedures that will need to be performed. In the unit we will look at the revenue and receipts cycle, but from the other side, i.e.: we are now the custome...

There are various costs which are incurred when running a business for example goods bought for consumption and resale as well as other services. The acquisition and payment for these goods and services is what constitute this acquisition and payment cycle. The acquisitions and payment cycle deals with two major activities which are linked but which are also quite distinct, Adam et al. (2020:756), these include: Ordering and receiving goods or services from suppliers – this activity is meant ...