Analysis of a Expenditure Head for Audit Using Statistical Analysis

Abstract

In our financial statement, expenses are of significant value. Their proper identification, transaction, controlling can ensure success or failure of a complete business unit. On practise on a lack of sufficient internal control or due to behavior of human nature they don't depicts the actual nature of its underlying value and occurrence. Generally, if expenses are under continuous scrutiny under a approving authority which helps to identity the true nature of the expenses on time frame of human memory with the rates and quantity with which it has occurred then there exist very less opportunity of manipulation. Expenses are generally used as tools for assets misappropriation by employees where manipulation of figures and quantity are generally performed and practiced as per generally business conduct. Hence with this paper we are trying to find the relevant data analysis tools that will help us identity the correctness of the datas that are provided for expenses analysis from a petty cashier for 5 months. Here the data is for average of 8 peoples with total of amount of NPR 26,014 with the total working days as 111 days. We have used the tools like dimensional averages of datas in terms of time, Benford law, Pareto and histogram analysis, audit program using data analysis. Here total of more than 50 sub items are purchased that constitutes the expenses per day for preparation of lunch of an office. We have performed a natural audit procedure that can be used as an alternative to one to one vouching methods to save time and hence be more effective in auditing. These analysis methods will help us identify the food expenses pattern for hotels, restaurants, canteen and other necessary food sales related industries.