- Auditing Tutorial
- Auditing - Home
- Auditing - Introduction
- Detection and Prevention of Fraud
- Detection and Prevention of Errors
- Auditing - Basic Principles
- Auditing - Advantages
- Auditing - Limitations
- Auditing - Classifications
- Preparation before an Audit
- Auditing - Audit Planning
- Auditing - Audit Program
- Examples of Audit Program
- Modification of Audit Program
- Methods of Audit
- Duties of Audit Staff
- Auditing - Audit Evidence
- Auditing - Types of Evidence
- Auditing - Audit Techniques
- Auditing - Internal Control
- Auditing - Internal Check
- Internal Check and Auditor
- Auditing - Internal Audit
- Auditing - Audit Sampling
- Auditing - Audit Vouching
- Auditing - Mechanized Accounting
- Auditing - Trading Transactions
- Vouching of Cash Transactions
- Auditing - Vouching of Ledger
- Auditing - Audit Verification
- Depreciation, Reserves & Provision
- Auditing - Capital and Revenue
- Auditing - Audit of Hospitals
- Audit of Educational Institutions
- Audit of Charitable Institutions
- Audit of Clubs & Theatre
- Audit of Sole Proprietary Concern
- Audit of Partnership Firms
- Auditing - Audit of Doctors
- Audit of Electricity Supply Company
- Audit of Shipping Company
- Audit of Co-Operative Societies
- Auditing - Audit of Hotels
- Auditing - Management Audit
- Auditing - Tax Audit
Auditing - Audit of Shipping Company
The following points need to be considered while conducting audit of Shipping Company −
As per appointment letter Auditor should know the scope of his audit work along with legal requirements to prepare his audit Program accordingly.
An Auditor should study the Articles of Association.
He should also study the contracts between Captains of ship and third parties.
An Auditor should thoroughly study the internal control system and should prepare his audit Program accordingly.
He should ensure that separate account has to be maintained for each voyage.
He should verify that all revenue expenses are to be charged to Voyage account and all incomes should be credited to Voyage account.
Separate ledger account for each voyage should be maintained.
Transactions relating to foreign exchange must be duly incorporated in the books of accounts.
An Auditor should ask for advices from agents and receiving officers to vouch freight charges paid. He should also verify the provisions relating to outstanding freight amount.
Proper depreciation should be charged for each ship.
Auditor should verify the rates of freight, commission and brokerage etc.
Proper allocation of insurance premium of each voyage is very much important. Balance amount of unexpired insurance should be carried forward. The claim received on account of insurance should also be properly accounted for.
Proper adjustment and accounting is must for outstanding liabilities and assets.
He should ensure that the capital expenditure should not be charged to revenue account and vice versa.
Heavy amount of repair and expenditure should be treated as deferred revenue expenditure.
He should verify the title deed of ships and other related documents on account of purchase of ships.