Organization of Audit Staff / Division of Audit Work

An audit requires to allocate the job of audit among the number of staff on the basis of their intelligence, qualification, knowledge and skills. Audit staffs can be classified into following two groups:

1. Senior staff: Generally senior staffs are involved to decide the works to be assigned to the junior staffs. Senior staffs work as supervisors for junior staffs. They provide suggestions, method of doing works, and co-ordinate the works of junior staffs. The primary job of senior staff is checking the accounts related to depreciation, revenues, stock, memorandum and articles, etc. which are more important on comparison to others.
2. Junior staff: Junior staff have to perform work under the direction of senior staff. Junior staff can discuss with the senior staffs where they feel difficulty. Junior staff checks journal entries, subsidiary books, cash books, vouchers etc.

Instruction to the client:
Before starting the job of audit, an auditor should give some instruction to the client. They are;

1. Giving instruction to prepare all the books of account, income statement, balance sheet, cash flow etc.
2. Giving instruction to preapre all the important document.
3. Giving instruction to make valuation of stock.
4. Arranging all the vouchers in order of date.
5. Giving instruction to prepare list of debtors and creditors.
6. Giving instruction to prepare the list of bad debt and doubtful debts.
7. Giving instruction to prepare bank reconciliation statement.
8. Giving instruction to prepare list of investment.
9. Giving instruction to prepare list of outstanding expenditure, capital expenditure and deferred revenue expenditure.
10. Giving instruction to prepare list of assets.