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WORK PAPERS - Coggle Diagram

- - - - Elements and Characteristics of working papers
        The working papers must be clear and concise regarding the account or operation to which they refer, the work carried out and the conclusions obtained; This is achieved by establishing a minimum of elements that should be taken into account when preparing them; Some of those elements that every audit work certificate must contain are listed below:
        • Name of the company you are referring to.
        • Closing date of the fiscal year under review.
        • Title or brief description of content.
        • Date it was prepared.
        • Name of who prepared it.
        • Sources from which the data were obtained
        • Concise description of work carried out.
        • Conclution.
        
        Characteristics
        • The worksheet is the identification that shows the groups or items that make up the financial statements.
        • The summary identification shows the G / L accounts that form an item
        • The identification details relate the items that make up a major account or any balance.
        • Check IDs contain the work done to check the correctness of an item or operation.
- - - - Classification
        The parts that make up the whole to be tested are called UNIVERSE and the selected parts are called SAMPLE, the relationship between the sample and the universe depends on many factors, including internal control, the homogeneity of the items, and the characteristics of the universe to be examined.
        In auditing, experience is essential to determine how many and which items should make up the sample, or otherwise, what should be the scope in the application of the procedures.
- - - - Audit Committee
        An audit committee is a group of individuals who meet to discuss matters that are everyone's responsibility or are of interest to all, with the purpose of receiving, analyzing, discussing and reaching agreements or conclusions related to the objective for which the audit was created. committee.
- - - - Depreciation Methods
        Straight Line This method tries to distribute over the service life, amounts as approximate as possible to the cost of an asset or group of assets less what can be expected for scrap value. This is the method most used by accountants.
        Produced Units This method is similar to the straight-line method, it only differs in that it distributes depreciation based on the units that will be produced each year, this method is recommended for assets that are in production departments, such as machinery and equipment that are transported internal.
        Decreasing Charges Method (accelerated depreciation) In this method the depreciation charges are higher during the first years of the life of a new fixed asset than in the later years.
        Sum of Years of Digits Method This method intends that the depreciation charges in the first years of life of the fixed asset are sufficiently large.