5+ Transactions Audit Templates in PDF

Jul 07, 2020

A transaction audit is a process of reviewing and evaluating the transaction that has been entered by an individual or an organization. There are generally two sections of a transaction audit. The first section shows the transactions that were entered on the client or the general ledger account. The second section shows the automatic journal entry that updates the general ledger Account.

5+ Transactions Audit Templates in PDF

1. Transactions Audit Template

icmai.in

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2. Staff Auditor Transactions Simple

pcaobus.org

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audit related party transactions template

siemensgamesa.com

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related party audit transaction policy example

bosch.in

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5. Audit Transactions Format

hkicpa.org.hk

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6. Basic Audit Transaction Template

oas.org

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What do You Understand by Audit?

In simple terms, an audit can be defined as the process of evaluation and examination of the systems, process, records, data, transaction of an organization. It is done to keep the organization safe and secure and immune to any type of issue or problem.

Why is Audit such an Important Process?

Achieve the Corporate Objective:

The audit in an organization is important as it helps to attain various corporate objectives. In business, there are requirements of various types of monitoring, internal control, facility supervision, to prevent and detect irregular transactions, measuring the ongoing processes and procedures and maintaining proper records.
Assessing the Risk of Misstatement

The auditors assess the risk or the possibility of the material misstatement in a company’s financial records. Without a proper audit system, an organization will not be able to create a proper financial record for internal and external use. An audit system is very crucial for an organization to create proper records and reports of a company and avoid any type of debilitation.
Detection and Prevention of Fraud

The audit system plays a vital role in preventing an organization from any kind of fraud. Continuous analysis of the company’s system and the procedures helps in maintaining and preventing any type of accounting irregularities. The audit professional designs and modifies the internal control system that prevents and detects any kind of fraud in the system.
The Cost of Capital

Regardless of the size, the cost of capital is very important. The strong audit system can reduce any kind of risk that is associated with the organization and its cost of capital. The cost of capital is largely associated with the risk of investment. The audit system works to reduce the risk and risk causing factors.

Hence the audit system of an organization helps and prevents the organization from any issue or risk that can create a problem for the organization.

What is the Difference between Transaction Audit and Internal Audit?

In the case of the transaction audit, the auditor takes care of only the transactions that have been entered. The focus of the auditor is completely on the transactions and not anything else. The auditor’s job is to examine and evaluate the transactions that an individual or an organization is performing. The data is then collected compared to the set criteria or the idea value based on which the audit was performed.

The internal audit process is very different. This is the evaluation as a whole without any exception. The auditor investigates and examines the management of the organization, different processes that are going on, the departmental functioning, the performance of the staff and all the employees, etc.

Unlike the transaction audit, internal audit is a vast and larger procedure of examination because this constitutes the organization as a whole. Whereas the transaction audit is only a part of the whole organizational auditing

The method that is used to understand, measure, report and finally improve an organization’s social and ethical performance can be termed as a social audit. Conducting a social media audit helps in narrowing the gap between the organization’s vision/goal and reality and also between efficiency and effectiveness.

What is the Final Audit?

The process of final audit can be defined as the evaluation that is done at the end or during the closing of the financial year. or when the final accounts are being prepared. The audit session is completed in one single session. There is less chance of data manipulation after the final check is done.

How Will You Conduct an Audit?

Step 1: Defining the Objective

Before the audit is started the auditor or the committee conducts a planning phase where all the information is gathered and the guidelines are set. Then the auditor determines the objectives and the scope of the audit. The auditor develops the audit program and then defines the audit testing procedures.

Step 2: Audit Announcement

Ones the audit objective has been defined the process of audit is announced. A memo is issued to the management of the department which will be audited.

Step 3: The Audit Entrance Meeting

The auditor discusses with the audit or the department to be audited the scope and the objective of the audit. In this step, it is the responsibility of the audit to provide the auditor with all the relevant information that will assist the auditor in the whole audit process.

Step 4: The Audit

In this step, the final audit is conducted and the data is gathered for evaluation. The auditor goes through all the set objectives so that he does not miss out on anything. The information is gathered for further evaluation to find issues and problems and things that need improvements. The auditor conducts the audit based on the guidelines.

Step 5: Reviewing the Results and Communicating them to the Auditee

The results that have been reached are reviewed and discussed with the auditee. The auditor communicates all the issues and problems and discusses with the auditee for the changes and improvements that are to be brought.

Step 6: The Exit Meeting

In the exit meeting, the auditor states the recommendations that will be there in the audit report. The recommendations are discussed as well as agreed upon by both parties.

Step 7: Preparation of the Audit Report

The last step is to prepare the audit report. The recommendations that have been made and have been agreed upon will be there in the audit report. The report will also contain the documentation of the whole procedure as well as the issues and the problems that were detected.

If you follow these steps you will be able to conduct a proper transaction audit. You can also download these templates provided above so that you can get a clear understanding. These templates are professionally developed for your convenience.