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Compare a general ledger with the non current asset register and obtain explanation for differences. Is this the completeness procedure?
Or this is the right one, compare non current asset register with the general ledger and obtain explanation for difference?
General Ledger is the source document, right?A general ledger is the “book” of all the accounts – at the end of each these accounts are balanced and a list of balances (“trial balance”) extracted. The financial statements are a representation of the trial balance after all the year end adjustments have been made.
A ledger account is NOT a source document.
See in Chapter 13 – source documents are “documents” – goods received/despatch notes, invoices (sales/purchases), cash (receipts/payments), etc. Not all source documents are recorded in the “books” – for example, when goods are despatched it is the sales INVOICE which is recorded in the book of prime entry (“sales day book”) – the sales day book is then “posted” to the relevant general ledger a/cs (Dr Trade receivable/Cr Revenue).
See Chapter 28 in FA notes for examples of business documentation and see Chapter 10 for books of prime entry.
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