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- Title
AUDITING ASSESSMENT ACCURACY.
- Authors
Peak, George
- Abstract
Accountants have been troubled in recent months over their responsibility in the matter of auditing inventories. It now appears to be settled that whenever no physical verification of inventories has been made, the auditor's report will contain an appropriate qualification. Furthermore, it is not an unreasonable prediction that auditors will become more and more insistent upon physical verifications. Inventories are the life-blood of an enterprise organized for profit; but this is not the case in an organization devoted to the task of furnishing public services. In the field of municipal government the primary revenue source is from taxes levied on property valuations. Inventory verification has a peculiar application in municipal post audits. Procedures outlined in the article should not be unduly expensive. And if the result of this addition to the municipal audit is to help obtain assessments reasonably close to full value, the outlay should be returned to the municipal treasury many times over. If gross inequities and low-ratio assessments go hand-in-hand, the social values of this auditing addendum should be given due weight in determining its usefulness. Of course, whether or not full-value results can be obtained is a moot question. There can be little doubt, however, that the additional auditing procedure would be a step in this direction.
- Subjects
ACCOUNTING; AUDITING; INVENTORIES; ACCOUNTANTS; MUNICIPAL government; SOCIAL values; CORPORATE finance
- Publication
Accounting Review, 1940, Vol 15, Issue 2, p238
- ISSN
0001-4826
- Publication type
Article