An Engagement letter is a legal contract between the External Auditor and his client. The main purpose of this letter, is to define clearly the extent of the Auditor’s responsibilities so as to minimize areas of misunderstanding between the client and the auditor. The Engagement letter is sent to the client by the auditor once he receives his appointment letter.
Management Letter of Representation
Management Letter of Representation is addressed to the client’s management or board by the External auditor stating the accuracy and truthfulness of information contained in the client’s books and records. The management letter absolves the External Auditor from any misstatement in the materials and records provided by the client and also serves as evidence. The letter is sent to the client before commencement of the audit, and is expected to be signed by the client’s management before the audited Account is signed.
Departmental Vote Expenditure Analysis Book
A vote book is a book of account controlled by an officer of a government used for monitoring expenditure government expenditure and ensuring that there is no extra-budgetary spending.
Reason for keeping a vote book
I. For effective monitoring of government expenditure
II. To show uncommitted balance at a glance
III. To highlight government creditors or liabilities
IV. To ensure that there is no extra-spending
A government departmental vote book, has fifteen columns and is divided into two parts, the expenditure and the liability
A typical sample of a Departmental Vote Expenditure Analysis Book
Line Number…. The column is used to record the transaction serially
Date column… record the date of the transaction or the date the transactions occurred.
Payment Voucher Number… a payment Voucher is a document of proof that payment has been made for either goods or services rendered. Of the characteristics of the PV is a voucher number, identifiable to all payment vouchers issued.
Particulars: the column will contain a detailed narration of the transaction being recorded.
Payment: this column is used to record the amount of the transaction.
Cumulative: records the cumulative payment
Liability Reference: every liability incurred will always have a reference number; this column is used to record them.
No comments:
Post a Comment