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Name
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Prepared
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File
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Year end: |
Reviewed by: |
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Subject: P&L AR |
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Objective |
To ensure amounts stated in the P&L appear reasonable. |
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Method |
Agree depreciation to the fixed asset lead schedule. Agree calculation of profit and loss on disposal of asset to fixed asset section. Compare movement in turnover to analysis of major customers on aged analysis, contracts for sale and price lists. Compare movement in major stock lines to movement in sales and cost of sales, and GP. Compare cost of sales to analysis of major suppliers on aged analysis. Compare GP to prior year. Compare GP to increase in sales and cost of sales. Compare opening and closing stock to balance sheet. Discuss with management. Compare stock days year on year, and relate to GP. Compare creditor days year on year, and relate to GP. Calculate income/income generating assets. Compare material admin expenses year on year. Compare rental income/expense to contracts. Compare movement in profit to movement in cash flow statement. Compare wages and salaries to head count. Compare wages month on month. Compare interest/total debt year on year and to contracts and agreements. Compare tax charge/profit year on year, and to tax comp. Discuss findings with management and staff, to ensure they appear reasonable. Ensure distributable profit calculated correctly, and dividends only paid out of distributable profit. |
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Result |
Page ref: Comments: |
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Conclusion |
According to the audit work performed, the objective has been met/has not been met. Problems recorded: |
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©Lynnix (UK) Ltd 19
Oct 2007