ABC advertising company appointed an auditor to resolve the problem of irregular accounts that is showing in its financial records: that the gross profit is 40% margin but its net profit is showing loss in the income statement. After comparing the budgeted figures, all the indirect expenses are under control except salaries and wages and their payment method is found to be suspicious. The company decided to hire Mr. salim as the external auditor. 

Based on the above scenario: 

1. Explain the adequate audit procedures that Mr. salim will use related to vouchers and payments.

2. How Mr. salim will explain the importance of vouching to the company.

Answer rating: 100% (QA)

1 Audit procedure Audit procedure is the guidance to the auditor and analyses that there should be proper recording of salaries and wages and also pay... View the full answer