Forums › ACCA Forums › ACCA AA Audit and Assurance Forums › validity,accuracy and complete
- This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.
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- January 22, 2015 at 8:00 pm #223453
Can you please help me to understand how to apply the validity, accuracy and completeness especially from an auditors point of view
January 22, 2015 at 9:37 pm #223460OK, think about a computerised wages system in which employees submit temi sheets that are the basis for being paid:
Validity: the time sheets need to be authorised to endure they aer valid ie that the correct hours are being claimed. Typically managers would sig these as authorisation.
Accurate: the input clerk types 53 instead of 35 hours ie a simple transposition error. If not detected then the inaccurate inpuit would mean that the employee is paid for 18 hours toomany. This could be detected by establishing a control total by adding up the hours on all teh time sheets. The computer then checks that the figure submitted reconcilt to the control total.
Complete: a time sheet is misplaced or two are turned over at once. There is missing data which will cause incorrect processsing. Again this has to be detected eg by ensuring each employee has a time-sheet input each week.
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