Cycle Audit Program:
Checking the transactions of receipt and consumption of inventories by sources and corresponding directions of their consumption and use.
Audit of the correctness of inventory valuation.
Audit assessment of the organization, conducting inventories; accounting regulation of inventory results.
Audit of operations with fixed assets: assessment of the safety of fixed assets at the places of their operation.
Audit of primary documentation of transactions with fixed assets.
Audit of fixed asset movements: analytical and synthetic accounting registers.
Audit of fixed asset restoration operations: correctness of calculation and write-off of depreciation of fixed assets; reflection of repair operations by type.
Audit of fixed asset lease operations by type.
Audit of transactions with intangible assets: verification of receipts and disposals; depreciation reflections.
Audit of capital investments: analysis of estimates.
Audit of the production (transformation) cycle.
Audit assessment of management accounting.
Audit information base: primary documents; analytical and synthetic accounting registers.
Audit assessment of the cost accounting method and calculation of the cost of products (works, services).
Element-by-element cost control for production of products (works, services).
Line-item control of costs for production of products (works, services).
Audit assessment of deviations.
Audit assessment of the correctness of calculation of the cost of products (works, services); accounting regulation of adjustments to planned (standard) costs.
Audit assessment of planned (standard) cost calculation.
Audit turns of analytical and synthetic accounts 20, 23, 25, 26, 29, 97.
Audit assessment of management accounting in an organization; compliance of the current procedure with that reflected in the accounting policies of the organization.
Audit assessment of maintaining a system of management accounting accounts.
Audit assessment of compliance of accounting and tax accounting costs
Operational control over the implementation of the production program.
Audit verification of the correctness of registration of receipts and movements finished products. Audit of analytical indicators of production and use of finished products.
Checking the correctness of the assessment of finished products.
Checking the organization and maintenance of analytical and synthetic accounting of the issue.
Audit of sales operations; checking the turnover of account 90 and the correctness of determining financial results from ordinary activities.
Audit of the operating cycle of cash flows and funds in settlements.
Audit cash transactions; cash transactions. Assessing the timeliness, correctness of organization and conduct of cash inventories; regulation of inventory results.
Formal, arithmetic and logical verification of transactions on settlement, currency, special accounts in banks.
Audit of non-cash transactions cash in accounting data and registers.
Audit assessment of analytical and synthetic accounting of financial investments.
Audit of calculations for the implementation of business contracts of organizations (checking the turnover of accounts 60, 62, 63, 76, including bill payments).
Audit of calculations for taxes, fees, credit transactions (checking turnover and calculations on accounts 68, 69, 66, 67).
Audit of intra-economic calculations.
Audit of settlements with employees.
Audit assessment and analysis of accounts 70, 71, 73, 75, 76.
Audit: formal, arithmetic and logical verification of the legality, validity, expediency, and profitability of settlement transactions performed with employees.
Audit assessment of the financial performance cycle.
Analysis of the turnover of account 99 from the point of view of the correct reflection of the turnover of the corresponding accounts.
Checking the correctness of closing accounts 90, 91.
Checking income tax calculations; audit assessment of the correctness of determining the taxable profit base.
Assessment of balance sheet reformation. Checking operations to reflect the formation of net (retained) profit; its use; analysis accounting entries and amounts. Auditor qualification of uncovered loss.
Audit of capital, reserves. Audit assessment of the organization's property status.
Audit and assessment of changes in capital, capital formation.
Audit verification of the validity of the formation and use of reserve groups; assessment of analytical and synthetic accounting.
Audit. Accounting (financial) reporting.
Arithmetic verification of accounting (financial) reporting forms. Logical assessment of accounting (financial) reporting forms.
Audit of the correctness, timeliness of preparation and presentation of accounting (financial) statements.
Educational, research and scientific-production technologies used in production practice
During practical training, the student must reflect the facts in the primary accounting documentation and accounting registers economic activity organizations using accounting programs. The use of the 1c Accounting program provides for the end-to-end nature of reflecting information measures up to the preparation of accounting financial statements.
9. Educational and methodological support independent work students on practical training
1. List of questions for current certification
2. The system of regulatory regulation of accounting in Russia.
3. The influence of organizational and legal forms of organizations on accounting
4. The influence of the specifics of activity on the organization of accounting
5. Accounting policy of the organization, principles of its formation and disclosure
6. Concept and classification of fixed assets
7. Valuation of fixed assets
8. Revaluation of fixed assets and reflection of its results in accounting
9. The concept of investments in non-current assets
10. The procedure for accounting for investments in non-current assets
11. Documentation receipt of fixed assets
12. Accounting for receipt of fixed assets
13. Procedure for calculating and accounting for depreciation of fixed assets
14. Documentation of disposal of fixed assets
15. Accounting for the disposal of fixed assets
16. Accounting for operations on current lease of fixed assets
17. Accounting for leasing operations
18. Inventory of fixed assets
19. Composition of intangible assets (intangible assets)
20. Initial assessment of intangible assets
21. Subsequent assessment of intangible assets
22. Accounting for receipt of intangible assets
23. Accounting for disposal of intangible assets
24. Procedure for calculating and accounting for depreciation on intangible assets
25. Accounting for expenses for research, development and technological work
26. Accounting for transactions related to the granting (receipt) of rights to use intangible assets
27. Definition and classification of materials, their composition
28. Evaluation of materials
29. Documentation of the movement of materials.
30. Accounting for inventories in the warehouse and in the accounting department
31. Synthetic and analytical accounting of inventories
32. Features of accounting for special equipment and clothing
33. Inventory of inventories
34. Accounting for finished products
35. Accounting of animals for growing and fattening
36. Goods accounting
37. Accounting for reserves for reducing the value of material assets
38. Elements and cost items
39. Accounts for recording production costs
40. Accounting for cash transactions
41. Accounting for transactions on current accounts
42. Accounting for transactions on foreign currency accounts
43. Accounting for funds in special bank accounts
44. Determination of financial investments
45. Initial assessment of financial investments
46. Subsequent assessment of financial investments
47. Synthetic and analytical accounting of financial investments
48. Accounting for provisions for impairment of financial investments
49. Modern forms non-cash payments and payment documents
50. Accounting for settlements with suppliers and contractors
51. Accounting for settlements with buyers and customers
52. Accounting for provisions for doubtful debts
53. Accounting for loans and borrowings
54. Accounting for calculations of taxes and fees
55. Accounting for social insurance and security payments
56. Accounting for settlements with accountable persons
57. Accounting for settlements with personnel for other operations
58. Accounting for settlements with various debtors and creditors
59. Accounting for intra-economic settlements
60. Accounting for settlements with founders
61. Types, forms and systems of remuneration and the procedure for its calculation
62. Primary accounting of personnel, labor and their payment
63. Additional payments for deviations from normal working conditions
64. Calculation of average earnings for vacation pay
65. Procedure for calculating temporary disability benefits
66. Procedure and accounting of deductions from employees’ salaries
67. Synthetic and analytical accounting of settlements with personnel for wages
68. Definition, classification and evaluation of materials.
69. Documentation of the movement of materials.
70. Accounting for authorized capital
71. Accounting for additional capital
72. Accounting for reserve capital
73. Accounting for target financing
74. Accounting for reserves for future expenses
75. Accounting for income and expenses of future periods
76. Accounting for shortages and losses from damage to valuables
77. Determination of income and expenses, their classification and recognition in accounting
78. Sales accounting
79. Accounting for other income and expenses
80. Accounting for profit and loss
81. Accounting for deferred income tax calculations
82. Permanent differences and permanent tax assets and liabilities, their accounting
83. Temporary differences and deferred tax assets, their accounting
84. Calculation of current income tax
85. Temporary differences and deferred tax liabilities, their accounting
87. Expand the content of financial and management analysis and the sequence of its implementation
88. Purpose of a comprehensive analysis of the technical and organizational level of production
89. What are the tasks, main directions and information support for the analysis of production and sales?
90. Execution Analysis contractual obligations and sales volume
91. Analysis of reserves for growth in production volumes
92. Objectives, main directions and information support for analysis working capital
93. Tasks of analyzing the use of material resources, sources of information
94. Analysis of the supply and efficiency of the enterprise’s use of labor resources
95. Labor productivity analysis
96. Analysis of the wage fund and the efficiency of its use
97. Tasks of analyzing the costs of production and sales of products, main directions, information support
98. Product cost analysis
99. The meaning and tasks of analyzing financial results
100. Analysis of the composition of financial results over time
101. Factor analysis of sales profit
102. Enterprise profitability analysis
103. What is the effect of financial leverage?
104. Break-even analysis and financial safety margin
105. Objectives and directions of analysis financial condition organizations, information support
106. Analysis of changes in the composition and structure of assets of the organization’s balance sheet
107. Analysis of changes in the composition and structure of liabilities of the organization’s balance sheet
108. Analysis of the financial condition of organizations
109. Assessment of the solvency of organizations
110. Assessment of the creditworthiness of organizations
111. Assessment of financial stability of organizations
112. Concept and content of the economic potential of an enterprise
113. Methods for comprehensive assessment of the effectiveness of the financial and economic activities of an organization
115. Use of complex methods of economic analysis to evaluate issuers.
Providing management structures with the information necessary to manage production processes and make decisions; control over the economical and rational use of material...
Share your work on social networks
If this work does not suit you, at the bottom of the page there is a list of similar works. You can also use the search button
Other similar works that may interest you.vshm> |
|||
| 11426. | AUDIT OF PRODUCTION CYCLE COSTS | 47.85 KB | |
| The main tasks of accounting for production costs: timely, complete and reliable reflection of actual costs for production and sales of products; calculus calculation of the actual cost of individual types and all commercial products; providing management structures with the information necessary to manage production processes and make decisions; control over the economical and rational use of material... | |||
| 18940. | ACCOUNTING, ANALYSIS AND AUDIT OF PRODUCTION COSTS (BASED ON THE EXAMPLE OF THE SURGUT GARMENT FACTORY, A DIVISION OF OJSC "SURGUTNEFTEGAZ") | 116.62 KB | |
| Great value for an organization, it acquires solutions to various problems related to the processing, storage and use of information about the enterprise. Such tasks as: information support for the decision-making process; providing a basis for pricing; monitoring the economic efficiency of the enterprise; obtaining data on performance results; calculation of valuation for balance sheet items and others. | |||
| 11428. | PURCHASE CYCLE AUDIT | 49.81 KB | |
| The production cycle is associated with material assets that are produced for sale. Its verification is the most complex and time-consuming. Most sources of audit evidence are internal documents created by the economic entity itself. | |||
| 21579. | Calculation of the duration of the production cycle for manufacturing an order for three types of movement of objects of labor | 225.38 KB | |
| The workshop received an order for the production of n products. Products will be transferred from operation to operation in p units. The first operation involves three jobs, the fourth – two, and all the others – one. Between each operation, interoperative time tmo min, total duration of natural processes Test min. Workers work in 2 shifts of 8 hours each. | |||
| 5368. | Industry specific features of cost accounting, cost calculation and construction of the operating budget of a manufacturing enterprise | 42.26 KB | |
| To calculate the cost of products are used special methods accounting for costs that depend on the organization and technology of production, on the nature of the products. The main ones are process-by-process, order-by-order, transfer-based and normative. | |||
| 11445. | ACCOUNTING AND AUDITING TMZ | 46.16 KB | |
| Accounting data must contain all necessary information to monitor useful movement and rational use of inventories. The lack of clear accounting leads to failures in control over the availability and consumption of inventories. They must be within the sphere of influence of the enterprise management. | |||
| 1491. | Classification of production costs and their accounting | 12.46 KB | |
| Incoming and outgoing costs costs and expenses. Input costs are those resources that have been purchased and are available and are expected to generate revenue in the future. In accounting, expired costs are reflected in the debit of the account | |||
| 1347. | Accounting for the costs of making a film | 13.22 KB | |
| Film script as an object of copyright Summary cost estimate. In the article, we will look at the example of a film production studio about the procedure for reflecting in the accounting accounts of transactions related to the process of financing and production of a national film. A cinematography organization is an organization whose main activities are: film production; production of film chronicles; film replication; film rental; film screening; film restoration; maintenance cinema hall;... | |||
| 18872. | Accounting and audit of finished products at the enterprise | 179.59 KB | |
| The purpose of this work is a more in-depth study of the specifics of accounting of finished products, analysis and audit of finished products at all stages of production and sales, comparison and contrast of theory with practice. We will also determine possible ways out of the crisis financial state of the enterprise. | |||
| 7718. | Accounting for financial instruments and borrowing costs | 81.27 KB | |
| Accounting for financial instruments and borrowing costs IAS No. 23 Borrowing costs IAS No. 32 Financial instruments presentation IAS No. 39 Financial instruments recognition and measurement IFRS No. 2 Payments based on equity instruments IFRS No. 7 Financial instruments disclosures 7. Financial instruments financial assets and financial obligations to determine categories of financial assets... | |||
Relationship between production cycle accounts
The production cycle is associated with material assets that are produced for sale. Its verification is the most complex and time-consuming. Most of the sources of audit evidence are internal documents created by the economic entity itself, which reduces their value for the audit. Therefore, for a successful audit, it is especially important for the auditor to have sufficient understanding of the characteristics of the client’s business, the essence of its production process, as well as visual familiarization with the production process in workshops, warehouses and other production premises. 17
Knowledge of the nature of the production process includes the information below.
Depending on complexity technological process Manufacturing of products distinguishes between simple and complex production. Simple production is considered to be that which is characterized by a single continuous process of extraction and processing of products. Simple production usually has a short cycle and no work in progress.
Complex production includes production in which the process of manufacturing a product consists of a number of separate independent processing stages, transitions, phases, and stages. For example, textile, shoe, engineering, meat, etc. Complex production always has a balance in work in progress. Industrial production Depending on the role of production of main products, they are divided into main and auxiliary.
The main ones include production facilities intended to produce the products for which the enterprise was created.
IN various industries industry, the range of main industries varies. For example, the main industries include: at a metalworking enterprise - linear, forging, mechanical, prefabricated shops; at a metallurgical enterprise - blast furnace, open-hearth, rolling, etc.
Auxiliary productions are those that serve the main production and the entire enterprise as a whole. Service is expressed in the manufacture or repair of tools, repair of equipment, buildings, etc.
Auxiliary production facilities include: tool, mechanical repair, repair and construction shops, power plant, steam boiler house, compressor station, motor transport, etc.
Some of the products of auxiliary production can be sold externally.
The system of accounting accounts related to the production cycle and the relationships between them is shown in Figure 1 (Appendix 12). The arrows indicate the directions of inspection. 7
The above relationship shows the composition of costs, allocation to expense accounts and their closure. So, in particular, release of raw materials into production, labor costs, accrual of reserves for vacation pay, deductions from wages for social tax, write-off of overhead costs are charged to the main production accounts and part of the costs to the expense accounts of the period. At the end of the reporting period, the main production accounts are charged to the cost of finished products, and the expenses of the period are closed with account 5610 “Total profit” (total loss).
Analytical procedure and substantive checks of the production cycle
The auditor must understand the company's control structure to a degree that allows him to plan the audit. This is necessary to identify possible misstatements or the risk of their occurrence and develop a methodology for substantive checks. The auditor analyzes what he already knows about the enterprise, reviews the results of the previous year's audit, talks with the client's staff, observes how the staff perform their duties, reviews...
If the auditor has assessed the control risk of some or all of the production cycle accounts to be low with respect to the audit objectives of completeness, accuracy and availability, then substantive tests in relation to these audit objectives may, with the exception of mandatory observation of inventory counts, be limited to analytical procedures. . It rarely assesses control risk as low for the following audit objectives: phenomenon, measurement, rights and obligations, presentation and disclosure, and therefore generally performs substantive tests for these objectives.
Objectives of the production cycle audit:
Completeness:
- · the company's expenses and production costs for the period under review fully include:
- a) the cost of all materials supplied and consumed in production;
- b) amounts accrued for wages and corresponding deductions for compulsory insurance and security;
- c) volumes of work in progress and finished products;
- G) depreciation charges on fixed assets, intangible assets;
- · turnovers and balances on synthetic accounting accounts are adequate to turnovers and balances on analytical accounting accounts and are completely transferred to the General Ledger and financial reporting forms;
- · requirements for the release of materials are constantly approved;
- · consumption of materials is justified, authorized and consistent with the goals and nature of production activities.
Accuracy:
- · inventory is correctly allocated to the appropriate accounts of the Standard Chart of Accounts and their movement is accurately calculated;
- · the cost of materials, calculations of depreciation amounts of fixed assets and intangible assets, labor costs and tax deductions are calculated with arithmetical accuracy;
- · the system of analytical accounting of production costs allows you to obtain information in the context of cost elements, costing items, and excess costs;
- · costs are correctly divided into direct and indirect;
- · indirect costs are distributed between types of products in accordance with regulations and accounting policies.
Existence (presence):
- · the fact of the existence of inventory is confirmed by the presence of relevant primary documents and the results of the inventory;
- · labor costs and related deductions are included in production costs and period expenses justifiably. 12
Grade:
- · the cost of material assets spent in production is included in the costs in the assessment provided for by the accounting policy;
- · the amounts of accrued depreciation of fixed assets and amortization of intangible assets are included in the cost price and the corresponding expense accounts of the period;
- · the amounts of labor costs and related deductions included in production costs are justified and correctly calculated;
- · the cost of finished products is calculated in accordance with industry guidelines for planning and calculating costs, and if they do not exist, in accordance with accepted accounting policies;
- · output of finished products and work in progress are assessed in accordance with the adopted accounting policies;
- · finished products in the warehouse are assessed in accordance with the accepted accounting policies.
Rights and obligations:
- · accounting policy provisions relating to accounting and evaluation of the process of transferring raw materials into production, as well as expenses incurred for wages and equipment operation, comply with the requirements of regulations;
- · the enterprise has legal ownership of its inventories; Inventories owned by other enterprises are recorded in off-balance sheet accounts. 12
Phenomenon:
- · business transactions for the supply of raw materials and supplies and calculation of product costs are documented for the corresponding period;
- · incurred production costs are recorded in a timely manner.
Presentation and Disclosure:
- · information on all reserve obligations is provided;
- · the presence of analytical accounting of production costs allows you to obtain information in the context of cost elements, costing items, and excess costs;
- · costs are correctly classified as current, capital costs are not included in production costs;
- · overhead costs are distributed between types of products in accordance with accounting policies. 20
The auditor must constantly remember the purposes of monitoring the inventory:
- · establish that the reserves actually exist;
- · Ensure that inventory counts and descriptions and their condition are accurate and properly documented. 3
Before beginning to observe an inventory count, the auditor must be sufficiently familiar with the client's business to be able, at least in general terms, to recognize the items being counted and to be able to general idea about characteristics that allow us to judge their quality and condition.
Therefore, the auditor should spend some time examining the inventory being counted; however, both the client and everyone concerned should be aware that the auditor is not acting as an expert inventory valuation expert.
The auditor should make control checks both to confirm the accuracy of the client's counts and to document supporting evidence of the inventory that can be used later in the inventory total. It is necessary to check, using a repeated count, the accuracy of the entries in the client’s documents reflecting the total of the calculations made; In addition, you should select and independently count some groups of inventories and compare the results with the quantities indicated in the client’s documents. This allows us to conclude that all inventory items are properly included in the client’s documents reflecting the calculation results.
The question of how many control checks need to be carried out is decided by the auditor, taking into account the circumstances. Unless there is special reason, the auditor performs a small number of control checks in relation to a certain amount of inventory.
One of important issues is to check the correctness of the assessment of material resources written off as cost, since the materials come from different sources, and the initial balances of materials may have a different price compared to those purchased. The validity of writing off material resources as expenses is determined based on the data from the relevant primary documents. The auditor needs to establish the correctness of the assessment of material resources for such transactions. The assessment must be made in accordance with the method established in the accounting policy of the enterprise. It is allowed to use one of the methods for a specific item of inventory during the reporting year.
The auditor determines as a result of which operations inventory items are received by the enterprise and their expenditure is carried out. All these transactions can be classified by the auditor into typical and atypical. Typical operations are subject to continuous study. Control procedures in both cases are aimed at analyzing documentation confirming transactions involving the movement of inventory and assessing the correctness of reflecting these transactions in the accounting accounts. 42
If in reporting period If individual inventories were marked down, there must be inventory reports, protocols of the inventory commission, information on market prices, and orders from the manager confirming the validity of such an operation.
The auditor will have to verify compliance technological standards write-off and consumption of materials, raw materials, equipment and household supplies. Sometimes enterprises, in order to increase production costs or to create “unaccounted for” finished products, allow an unreasonable increase in material costs or their overexpenditure. Here you can use a control run of raw materials or draw up an alternative balance of raw material costs according to standards.
The auditor carefully checks the composition and distribution of overhead costs. Based on primary documents, the correct distribution of expenses for heating, lighting, maintenance and rental of premises, advertising, wages of management personnel, etc. into specific accounts is checked. The procedure for distributing overhead costs must be approved by the accounting policy of the enterprise. In this case, the auditor should pay attention to the features of accounting for overhead costs. An accounting feature may consist in dividing them into overhead costs included in the cost price and related to the expenses of the period.
The reliability of “work in progress” indicators and the correctness of the write-off of costs for finished products are also checked. Special attention should be given to adjusting entries in order to establish the correctness of the write-off of costing differences. There may be artificial violations that increase or decrease the cost of production during its sale. 37
In order to reasonably assess the state of accounting for production costs, it is advisable to record all identified violations in a specially designed statement, which should include the following indicators: content of the transaction, name of the document, date of preparation and document number, amount, correspondence of invoices, note. In the note, the auditor records conclusions and reasonable suggestions for correcting deficiencies.
When checking the expenses of the period, the auditor should pay attention to the correct classification and inclusion of costs in them, in accordance with the Methodological Recommendations to Accounting Standard 7 “Accounting for Inventory” in terms of the formation of expenses that are not included in the cost of inventory and are recognized as expenses period.
The practice of audits shows that it is not uncommon for the costs of a given reporting period to include expenses incurred in other reporting periods. Therefore, it is necessary to remember that according to the Methodological Recommendations to Accounting Standard 7 “Accounting for Inventory” in terms of the formation of expenses that are not included in the cost of inventory and recognized as expenses of the period, “expenses of the period are written off in the reporting period in which they produced, and are not carried forward to subsequent periods in the balances of unsold products and work in progress.”
Costs for which it is impossible to accurately determine which period they relate to, as well as certain types of costs in seasonal industries, are included in the cost of production or in the expenses of the period in an estimated normalized manner. 45
4.2 Audit of the production cycle
In the process of checking production costs, the following tasks are solved:
1) assessment of the validity of the applied option for generating information on the enterprise’s expenses for ordinary activities, the cost accounting method, the option of consolidated cost accounting, methods for distributing general business expenses;
2) confirmation of the accuracy of registration and reflection in the accounting of direct and overhead costs;
3) assessment of the quality of inventory of work in progress;
4) arithmetic control of cost indicators based on free accounting of production costs.
Sources of information for conducting an audit of production costs are: development tables (on the distribution of wages, contributions for social needs, services of auxiliary production, calculation of depreciation of fixed assets); statements of distribution of general business expenses, expenses for maintenance and operation of equipment; certificates and calculations on the distribution of future expenses, acts of inventory of work in progress, statements of consolidated accounting of production costs; accounting registers for accounts 20, 23, 26, 97, General Ledger, Regulations on the accounting policy of the enterprise.
Before the start of a documentary audit, organizational and technological features enterprise, specialization, scale and structure of each type of its production activity. Auditors determine the validity of the practical option for generating information about an enterprise’s expenses for ordinary activities, the method of accounting for production costs and the option of consolidated cost accounting.
During the audit, it was found that expenses for ordinary activities are accounted for on accounts 20, 23, 26, the cost accounting method is the “Standard-cost” system, that is, the standard cost accounting method, consolidated cost accounting is carried out according to the unfinished version, which is recorded in the accounting enterprise policy.
Confirming the accuracy of registration and reflection in the accounting of direct and overhead costs, auditors determine the validity of attributing each type of cost to the cost of production, the correctness of the differentiation of costs by reporting periods and accounting objects, and the compliance of completed correspondence accounts with the established regulatory documents. At the same time, working documents that have already been generated by auditors when checking operations on procurement and expenditure, with funds, and settlement transactions are studied.
To assess the level of the internal control system over production processes and the rational use of material and labor processes in these processes, comparative analysis actual indicators of the cost of production with planned indicators of the cost of these products. If significant deviations are identified, it is necessary to find out the reasons for their occurrence.
The auditor also establishes the validity of organizing analytical accounting of costs and output separately in each type of main and auxiliary production; production costs are taken into account according to the established nomenclature of items; Are there any facts in connection with this of unjustified organization of accounting for consolidated cost items; Do the analytical accounting data correspond to the synthetic accounting data for accounts 20, 23.
The auditor checks the correctness of the definition of accounting objects in analytical accounting; correctness of construction of costing items. Based on this, it is established: do they keep records of labor costs in all cases based on the volume of work performed, production of products in accounting and waybills, on personal accounts and other relevant primary documents, whether the labor costs included in the production costs of products for the relevant objects always correspond to the data in the primary documents or consolidated registers; is the inclusion of wages in kind in the costs of production confirmed by a special calculation; whether contributions for social needs are taken into account and allocated to the relevant accounting objects in proportion to labor costs.
Compliance with technological standards for the consumption of raw materials and materials is established by drawing up an alternative balance of consumption of raw materials and materials per manufactured product, according to the standards, as well as by carrying out a control run of raw materials.
In the process of checking the consumption of inventory items in production, experts must analyze the main production processes in order to identify unused resources, increase production and reduce production costs.
It is also checked whether the costs of auxiliary production were accounted for during the year for the relevant accounting objects based on the volume of work and services performed in the planned cost per unit of these works and services; whether the planned cost of work and services performed at the end of the year is adjusted to the actual costs, which are written off to the corresponding accounting objects.
The correctness of accounting and the validity of the distribution of costs associated with the organization of production and management to the corresponding accounting objects and costing objects are also subject to verification.
Auditors must find out: the correctness of the division of production costs by reporting periods; compliance with the chosen method and the accuracy of the assessment of material resources written off as production costs; correct inclusion of depreciation on fixed assets in the cost price; the validity of the distribution of general business expenses among costing objects.
Auditors also control the composition of deferred expenses and the legality of their attribution to cost.
In the process of studying costs, it is important to make sure that they are correctly documented and reflected in the accounting accounts. The account correspondence schemes used must correspond to the correspondence schemes provided for in the chart of accounts.
During the audit, the status of accounting for work in progress, the timeliness and correctness of its inventory and assessment are checked; the frequency and procedure for conducting an inventory of work in progress is analyzed, inventory lists and matching sheets are studied. Confirming the reliability of the assessment of work in progress, auditors carry out arithmetic control of its volume in physical and value terms.
The last stage checks of the production cycle should include tracking the correct correspondence of accounts for accounting for production costs, product output and checking the compliance of analytical accounting entries in personal accounts (production reports) with entries in order journals, the general ledger and reporting data.
Rubles). In general, the balance sheet currency will be 70,000 rubles, the asset is equal to the liability. Journal of registration of business transactions (purpose, order of maintenance, relationship with the information of the turnover sheet) Based on the method of recording business transactions in accounting, a distinction is made between chronological and systematic accounting. Chronological accounting provides for the reflection of business transactions in...
Discussion and adoption of international accounting standards. The work of the Interpretation Commission is one of the highest priority areas in the development of the IASB. The traditional process of developing international accounting standards includes the following stages: Stage I. formation of the Editorial Commission. It is headed by an authorized representative of the Management Board. It usually includes representatives...
Constantly think about the rational investment of temporarily free funds to make a profit (bank deposits, securities etc.). Based on this, the main tasks of cash accounting are: · checking the correctness of execution and legality of documents, · timely and complete reflection of transactions in accounting. · Ensuring timeliness...
Institutions. REVIEW on thesis 5th year student of the Faculty of Economics of KubSU, specialty 06.05 Lyapina G.V. on the topic “Improving the organization of accounting of settlement transactions using budgetary and extra-budgetary funds in the education system” (using the example of Centralized Accounting No. 2 of the Education Department of the Administration of the Karasun District of the Krasnodar City Hall) ...
The audit of manufacturing enterprises is characterized by labor-intensive and complex procedures. Therefore, the choice of testing methodology for production cycle operations has a significant impact on the overall testing methodology.
Production cycle operations largely determine the composition and volume of consumed inventories (procurement and consumption cycle); composition and structure of income (cycle of sales and receipt of income) and movement of the organization’s financial resources (financial and investment cycle). This explains the need for a more detailed study of the contents of the production cycle. Let's consider it.
The structure and procedures of the production cycle are shown in Figure 1.
Rice.1. Structure and procedure of the production cycle.
The methodology for auditing operations of this cycle is influenced by: the specifics of technology, type and organization of production, cost accounting methods and calculation of product costs; organizational and production structure of the enterprise and other factors.
The objectives of the production cycle audit, in our opinion, are:
- assessment of the effectiveness of internal control, including: organization of document flow; carrying out inventory; distribution of responsibilities and powers, implementation of production accounting; composition and preparation of internal reporting; restricting access to assets, authorization and accounting of business transactions;
- studying the system of normative management and its use in setting prices and controlling the consumption of resources;
- checking the organization of production cost accounting and its compliance with current documents;
- production cost analysis.
In accordance with the formulated objectives, a verification methodology was developed, presented in Table 6.
Table 6. Elements of the production cycle operation methodology
|
Elements of the methodology |
Characteristics of the elements of the method |
|
|
The purpose of auditing production cycle operations is to express opinions on the reliability and completeness of reporting information on finished products, work in progress and costs of production of products (works, services) |
||
|
Tasks of checking the prerequisites for preparing financial statements |
Confirm that the balances of finished goods (GP) and work in progress (WIP) reflected in the reporting exist. |
|
|
Existence |
Confirm that the organization’s rights to the GP reflected in the reporting are documented and not limited by the rights of third parties. |
|
|
Emergence |
Confirm that reflected in the accounting accounting for transactions on the movement of GPs took place in during the reporting period. |
|
|
Confirm that there is no GP, which should be reflected in accounting and reporting, and was not reflected in it |
||
|
Valuation |
Confirm that: GP is reflected in accounting and reporting at the correct valuation; WIP is reflected in accounting and reporting in the correct assessment; The costs of the reporting period are reflected in accounting and reporting in the correct amount; Deviations in the cost of GP are reflected in the accounting records in the correct amount; The valuation of GP upon its sale or other disposal is applied in accordance with the accounting policies of the organization. |
|
|
Periodization |
Confirm that expenses and transactions related to the movement of state enterprises are reflected in the reporting period to which they relate |
|
|
Validity |
Confirm that GP movement operations are documented and authorized |
|
|
Statement |
Confirm that production reports are approved and controlled |
|
|
Presentation and disclosure |
Confirm that: GP is correctly classified; GP is reflected in accounting in accordance with the regulations of the Russian Federation; All relevant information about GP and costs disclosed in the reporting. |
|
|
Procedures for Gathering Audit Evidence |
Procedures for preparing and planning an audit |
1. Checking initial balances. 2. Checking the compliance of analytical and synthetic accounting balances and financial statements, 3. Assessing the applicability of the organization’s chosen accounting policy, analyzing the correctness and consistency of its application. 4. Testing of the internal control system. 5. Identification of priority areas of inspection, 6. Constructing an audit sample. |
|
Substantive procedures |
1. Checking the correctness of the inventory of goods and work in progress, reflecting the results of the inventory in accounting, 2. Monitoring the inventory. 3.Checking the correctness of the WIP assessment. 4.Checking documentation in accounting GP, composition and content of internal reporting on the movement of the GP. 5. Checking access restrictions to the GP. 6. Study of the system of normative management and its use in accounting, control over the consumption of resources and setting prices (tariffs). 7. Checking documentary evidence of expenses and the amount of expenses by cost elements, places of occurrence, areas of use, etc. 8.Checking the correct formation of yourself cost of products by objects of accounting and calculation: By direct cost items; For indirect (invoice) items; By calculation objects. 9. Analysis of GP movement; 10.Checking documentary evidence operations for the movement of GP: Checking the correctness of documents; Checking the completeness of documentary evidence of business transactions in the SOE. 11. Checking the correctness of the GP assessment upon disposal. 12. Analysis of production costs; 13. Analysis of the movement of the GP. |
|
|
Final procedures |
1. Analysis of errors and violations identified during the audit and assessment of their impact on the reliability of the financial statements. Formation of an opinion (conclusion) on the reliability of GP and WIP indicators in reporting |
|
The reliability of the production cycle accounting and internal control system can be assessed using the test we developed, shown in Table 7.
Table 7
Tests of internal controls of the production cycle
(Working paper RD-11)
|
Internal control element and test content (questions) |
Note (assessment of the reliability and effectiveness of the internal control system) |
||||||
|
1. Accounting system 1.1. Are accounting methods reflected in the accounting policies? completed production and costs for major 1.2. Is there a department in the accounting department for recording production costs and calculating production costs? products. 1.3. Are responsibilities and powers distributed between employees of accounting and other processing services production reports, cost accounting and preparation calculations. 1.4. Has a document flow schedule been drawn up for production cycle operations? 1.5. Are documents numbered, and are incurred costs reflected in the accounting registers in a timely manner? 1.6. Does the method of cost accounting and calculating the cost of products used at the enterprise correspond to the accepted accounting policy, and how rational is it? 1.7. Whether the cost accounting and calculation software and computer generated reports meet the established requirements. |
|||||||
|
2. Control environment 2.1. Do management make decisions promptly? on production issues and whether they are used for this management accounting and financial data parity. 2.2. Does it allow organizational structure undertaking to exercise control over the expenses by department, place of origin, responsibility centers. |
|||||||
|
2.3. Does organizational status make it possible to divisions of the enterprise to carry out effective internal control of production activities. |
|||||||
|
2.4. Are your education, experience and qualifications appropriate? and personnel competence in quality implementation niyu production operations. |
|||||||
|
2.5. Do staff know their responsibilities and operating procedures? bots, are they able to carry out internal management? accounting and prepare reports for management sky goals. |
|||||||
|
2.6. Is the production process being carried out appropriate? activity requirements. technological instructions tions, standards, norms and regulations, industry in- Cost accounting and costing guidelines. |
|||||||
|
3. Control means (procedures) |
|||||||
|
3.1. Are arithmetic and documentation carried out? detailed verification of the correctness of accounting records and reconciliation of calculations, |
|||||||
|
3.2. Is access to assets and transactions permitted? production operations with management approval. |
|||||||
|
3.3. Are planned and sudden inventories carried out? rizatsiya and control checks of material valuables ties, work in progress, compliance with technical logical process, product output. |
|||||||
|
3.4. Is information from sources located outside the enterprise, and also periodic rotation of personnel. |
|||||||
|
3.5. Is there a comparison of planned (estimated) applicants with actual facts and finding out the reasons for the existing venous discrepancies. |
|||||||
We believe that to assess reliability, a system of qualitative ratings (low, medium, high) or a point rating can be used.
The second approach to assessing the reliability of a system, in our opinion, is preferable, because allows you to give an integrated assessment of all aspects of testing.
For this, the following nine-point scale can be used
|
Reliability level |
Low reliability |
Average reliability |
High reliability |
||||||
The general (integral) assessment of system reliability can be determined using the following formula:
Кij Кij
Kint = ∑ x Bij / ∑ x Bmax,
Kint is an integral indicator of the reliability of the internal control system of the production cycle;
Kij - element of the internal control system (test question);
Bij is a score that assesses the reliability of an element of the internal control system;
Bmax is the maximum score that can be used to assess the reliability of an element of the internal control system.
We assessed the internal control system for the production cycle of the State Institution “Dagavtodor” and is shown in Table 8. The integral indicator of the reliability of the control system for the production cycle of this enterprise was:
Kint = 105 / 162 = 0,6482
The resulting integral indicator is relative and can be recalculated using the given point scale - 5.76 points (9 points x 0.6482). This corresponds to the average level of system reliability.
In development of the proposed verification methodology, a verification program should be considered.
In addition to the program for checking the production cycle as a whole, procedures for detailed verification of individual types of expenses should be developed, depending on their impact on the total value of production costs and the results of testing the internal control system of production cycle operations. In particular, these can be verification programs:
- write-off and production of the cost of raw materials and supplies;
- labor costs and social insurance contributions;
- expenses of auxiliary and service industries;
- general production and general business expenses;
- consolidated cost accounting and calculation of product costs;
- release of finished products;
- expenses for R&D, preparation and development of production of new types of products, etc.
The methodology we propose for auditing cycles of operations and, in particular, the methodology for auditing the production cycle can be adapted to the conditions of any specific enterprise using specially developed working audit documents, which can be divided into main and auxiliary.
The first group includes documents generated during the audit process, the second group includes documents containing the necessary regulatory, reference, and methodological information. We provide examples of working documents that may be included in this group in the appendices. Let's consider the proposed audit program using the example of the cycle of production operations of the State Institution "Dagavtodor". In order to adapt the general plan and to describe the features of the operations of the enterprise’s production cycle, a working document (RD-12) “Characteristics of elements of accounting policies” was used, on the basis of which two documents were prepared:
Characteristics of the accounting accounts of operations of the production cycle of the State Institution "Dagavtodor" (RD-13) Table 9
|
Synthetic accounting account |
Analytical signs |
Characteristic |
|
20 "Main production" |
Accounting was organized for construction projects and types of work (repairs, operation of bridges) in the context of funding sources (federal, republican) |
|
|
subaccount 2 "Production, including concrete, reinforced concrete products (concrete products) |
Accounting is organized according to product groups and nomenclature characteristics. Our own products are used in construction and for the implementation of repair work and is implemented on the road. |
|
|
23 "Auxiliary production" |
In analytical accounting, expenses are grouped according to the following criteria: Repair shops; Sawmill; Boiler room. The costs of auxiliary production are distributed among accounting and costing objects on the basis of internal orders (repairs); according to hours worked for freight vehicles. |
|
|
25 "General production expenses" |
It is used to account for the costs of maintaining and operating construction machines and mechanisms by equipment groups, determining the costs per 1 machine-hour of equipment operation. Included in expenses for accounting and calculation objects is proportionally 1 machine-hour of work. |
|
|
26 "General expenses" |
Used to account for the costs of enterprise management by analytical expense items. Distributed among accounting and costing objects in proportion to the main wages production workers. |
|
|
29 "Service industries" |
used to account for expenses for non-production facilities on the organization’s balance sheet (residential buildings, dormitories, cultural center). Some of the premises are leased under agreements with the Property Management Committee. The enterprise's accounting reflects the receipt of funds for reimbursement of expenses for the maintenance of premises and rent from residents transferred to specialized organizations. |
Table 10
Characteristics of the elements of the accounting policy of the production cycle of the State Institution "Dagavtodor" (RD-4)
|
Accounting policy element |
Valid options |
Regulatory base |
Method used |
|||||
|
Methods for calculating depreciation charges for individual accounting objects |
Linear method Reducing balance method Write-off method by sum of numbers years of useful life Write-off method is proportional production volume |
Clause 18 PBU 6/01 |
By road transport |
|||||
|
G. |
The procedure for accounting and financing the repair of production fixed assets |
Actual repair costs fixed assets are included in production cost according to repair production Actual repair costs fixed assets are deferred expenses A reserve of expenses for repairs of fixed assets is created |
Section 5 of the Methodological guidelines for accounting for fixed assets P. 26 PBU 6/01 |
|||||
|
Write-off of the cost of fixed assets without accrual of depreciation |
By objects: Cost no more than 20,000 rubles. for unit or other value limit From books, brochures, etc. |
P. 18 PBU 6701 |
||||||
|
Methods for calculating depreciation by individual groups (intangible assets) |
One way: Linear Reducing balance Proportional to the volume of products (works) |
Clause 15 PBU 14/2000 “Accounting for intangible assets” dated October 16, 2000 No. 91n |
||||||
|
Method of reflection in accounting for depreciation of intangible assets |
One way: - by accumulating depreciation on account 05 - by reducing the initial cost |
|||||||
|
Accounting unit (AMU) |
It is established by types and groups of MPZ: Item number Homogeneous group Other signs |
Clause 3 PBU 5/01 "Accounting for material production reserves" dated 06/09/98 No. 44n |
||||||
|
The order of reflection in accounting of the process of acquisition and procurement of inventories |
One way: Using account 10.41 with an estimate at actual cost Using accounts 10,41,15 and 16 with assessment of materials according to accounting |
Chart of accounts dated October 31, 2000 No. 94n |
||||||
|
Grade; Inventory by group |
For trading enterprises, the costs of procurement and delivery of goods are reflected in one of the following ways: Included in the cost of goods Included in selling expenses |
Clause 13 PBU 5/01 |
||||||
|
Methods: estimates of inventories when they are written off |
Installed by groups of MPZ: At the cost of each unit At average cost Using the LIFO method Consequences of changing methods estimates of inventories for next year |
Clauses 16 and 22 PBU |
For special clothes: |
|||||
|
Cost of inventories, transferred data, in fee |
At the contractual value of the inventories pledged as collateral |
P. 14 PBU 5/01 |
||||||
|
means of labor, taken into account as part of special tools, devices, equipment, clothing |
A specific list of labor tools, taken into account as part of special, determined organization based on the characteristics technological process |
Clause 8 "Methodological guidelines for accounting of special tools, special devices, special equipment and special clothing" dated December 26, 2002, No. 135n |
there is a list |
|||||
|
Unit of account special. accessories |
It is allowed to organize accounting according to enlarged sets |
Clause 43 of Methodological Instructions No. 135n Clauses 24, 25 of Methodological Instructions No. 135n |
||||||
|
Repayment of cost specialist. accessories |
This is done in one of the following ways: Proportional to output volume products Linear |
P. 26, 21 of Methodological instructions No. 135n |
||||||
|
Repayment of the cost of special clothes |
Carried out in a linear manner |
Clause 63 Regulations on accounting and reporting in the Russian Federation (Order of the Ministry of Finance of the Russian Federation No. 34n) |
||||||
|
Assessment of work in progress |
Work in progress is assessed by: Standard cost Direct cost items Costs of raw materials, semi-finished products, materials At actual cost |
|||||||
|
Finished product evaluations |
According to actual production production costs At standard cost By direct cost items |
Clause 59 Regulations on accounting and reporting in the Russian Federation |
||||||
|
Option for accounting for production costs |
Option with cost division reporting period into direct and indirect, with the inclusion of the latter in the actual cost and determination of the full actual cost — Option for defining incomplete actual cost with the attribution of general business expenses to the debit of account 90 |
Chart of accounts No. 94n |
||||||
|
Recognition of administrative and commercial expenses |
expenses are recognized in that report - period in which they are Commercial and management expenses are distributed between sold products and their balances at the end of the period |
Clause 9 PBU 10/99 “Organizational expenses” dated 05/06/99 No. ЗЗн |
||||||
|
The procedure for recognizing you-hands |
Revenue is recognized upon completion of all work (provision of services) Revenue is recognized over time work efficiency, services |
Clause 13 PBU 9/99 “Income of the organization” dated 05/06/99 No. 32n |
||||||
|
A method for determining the readiness of work, services, products, revenue from the implementation of which is recognized as readiness |
Readiness cannot be determined, you the handle is determined by actual production costs Readiness is determined by this memory, in accordance with the conditions agreement |
P. 14 PBU 9/99 P. 13 PBU 9/99" |
||||||
|
The procedure for creating a reserve for doubtful debts |
The organization does not create a reserve for doubtful debts: The organization creates a reserve for co- suspicious debts |
Clause 70 Regulations on accounting and reporting Chart of accounts No. 94n |
||||||
|
The procedure for reflecting interest on borrowed funds |
— The organization reflects interest for borrowed funds for the purchase of inventories as part of the actual costs of acquisition (using accounts 15,16) The organization reflects interest for borrowed funds as part of expenses |
P.6PBU5/01 clause 11 PBU 10/99 P. 14, 15 PBU 15/01 “Accounting for loans and loans and the costs of servicing them” dated 02.08.01 No. 60n |
||||||
|
Composition and procedure for writing off additional costs for loans |
Organization of such expenses: Reflected as operating expenses during the period of their implementation Preliminarily taken into account as part of accounts receivable with subsequent equal inclusion in operating expenses c. flow maturity date of obligations |
P. 20 and 19 PBU 15/01 |
||||||
|
Expenses for future periods |
A list of expenses is provided. current periods The procedure and timing of their write-off |
a method of uniform write-off of expenses over the period to which they include |
||||||
|
upcoming expenses and payments |
List of created reserves for upcoming payments: To pay for vacations To pay remuneration for length of service By preparatory work V due to the seasonal nature of work For repairs of fixed assets For warranty repairs and warranty service No reserves are created for future payments |
P. 72 Regulations on accounting and reporting Chart of accounts No. 94n |
||||||
|
Method of accounting for state aid |
Carried out using one of the following methods: Accruals - “cash” (as per actual receipt) |
Clause 7 PBU 12/2000 “Accounting for state aid” dated October 16, 2000 No. 92n |
||||||
|
Financial accounting unit investments |
It is determined by the organization independently, and can be: series, batch, etc. |
Clause 5 PBU 19/02 “Accounting for financial investments” dated 12/10/02 No. 12bn |
||||||
The advantage of the proposed document is that, firstly, it provides detailed description cycle accounting systems; secondly, it can be used to evaluate testing of accounting cycles for compliance of the accounting organization with the requirements regulatory documents.
Characteristics of the elements of accounting policy from the standpoint of its compliance with the requirements of regulatory documents provides an assessment of the accounting system, determines the main directions and procedures for detailed tests of individual operations and objects.
Audit of production cycle operations based on the proposed methodology using a testing program, an audit program, forms of working and supporting documents, provide a comprehensive and systematic approach to check. Audit working documents, in addition, make it possible to detail the audit areas by cost and costing locations (analytical characteristics of accounts) and by type (elements) of costs.