Finance Problem
Neha has drafted the ledger accounts and financial statements at year end for her promotions and marketing business and is pleased that Gross Profit is £74,500 and Net Profit is £14,500. However, on checking the details more closely, she identifies the following:
Rent from a client of £3,500 for the short-term use of an unwanted outbuilding for storage has been credited to the Land and Buildings account.
The cost of a colour photocopier for the business, £13,500 including installation costs, has been debited to the Purchases account.
A bill for £650 for repairing some office equipment has been debited to the Vehicle Expenses account.
The price of a motor vehicle for business use, namely £7,500, has been debited to the Vehicle Expenses account. Carriage in of £80 has been entered to the Postage and Delivery account.
£18,000 from the sale of the outbuilding has been credited to the Sales Revenue account
• Describe the role and purpose of an internal auditor for a business.
• Why an External Auditor is needed?
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.