Jallow is a small merchant who also manages a supermarket in a busy area of Banjul. On 30th
September, 2019, he produced the following closing balances from his ledgers:
D
Capital 34,200
Drawings 10,980
Purchases 90,720
Inventory 16,260
General Expenses 17,040
Fixtures and Fittings 3,900
Sundry Receivables 17,220
Sundry Payables 14,580
Bank 4,560
Sales 111,900
During October 2019, the following transactions were recorded:
Purchased good on credit 6,390
Sold goods on credit 8,730
Receipts from debtors 12,555
Paid trade payables by cheque 10,755
Purchased new fittings on credit 585
Drew cheque for private use 900
Paid general expenses by cheque 1,395
As Glory’s book-keeper, you are required to:
(i) Prepare the necessary ledger accounts
(ii) Balance up the accounts and draw a trial balance as it would appear on 31st
October, 2019
Question Four
(a.) Who is an External Auditor? An external audit is an independent examination of the financial records prepared by an organisation. The main objective of an external audit is to verify that the accounting records for a company provide a true and accurate picture of the organisation’s finances and that statements are prepared in accordance to the set laws and accounting standards.
An
external auditor
is an
independent, third party professional who performs an impartial review of the financial records of an organisation. They are responsible for examining their client's accounts and financial statements, and preparing impartial reports of the findings, including any irregularities.
(b.) Enumerate the services of an External Auditor