01 July 2008
How will you find a ommission of a bill from entering the accounts when you do not have or seen the bill? That is the bill is ommitted from accounting because of unintentional misplacement of the bill by the accounts department. The accounts department is not aware of the ommission.
How will an auditor will find the above query while vouching or general ledger scrutiny?
Errors of ommission can be found out of following: (1) subsequent date verification where the accountant might have accounted the bill. (2) Analaytical review, where you know what should have been your expected balance and you arrive at that number (3) Ledger serutiny, if it is recurring bill, will through out during ledger srtny.
05 October 2008
Studying liabilities for goods supplied, Payments made for which bill not accounted etc can also be of help. Confirmation of balances can be another tool.
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