Representation letter in auditing
Representation letter is used by auditor to get confirmation from audit client that they have been fair in providing all the relevant information/explanation to the … Read more
What are In-kind Benefits?
In-kind benefits are any sort of benefits that are not related to money or currency and are given above the worker’s or director’s pay. Automobiles, … Read more
Recurring expense and Non Recurring Expense
What is meant by Recurring Expense? Recurring expense is also known as recurring costs as the name suggests are repeating expenses. They are brought about … Read more
Asset vs. Expense
For an effective business management, it’s necessary to understand asset vs. expense. So, If you have started up a business or already have one, you … Read more
What is a disclaimer of opinion?
Disclaimer of opinion meaning Disclaimer of opinion means that auditors were not able to make any opinion on the financial statement of the business. So, … Read more
Statement of owner’s equity
Statement of owner’s equity help to understand the current wealth owned by shareholders/owners. The movement of balance in the statement indicates whether the business has … Read more
Marketing expense (All you need to know)
Marketing expense is an essential expense for companies to grow and promote their products and / or services. Good marketing has become vital in today’s … Read more
What is a delivery note? (All you need to know)
Delivery note meaning The delivery note is a shipping document that enlists details of delivery. It’s generally used to certify/verify receipt of the goods by … Read more
What is credit repair and how to do it?
Credit repair refers to corrections in the credit report. If there is any error in your credit report, these errors are reported to the credit … Read more
Tips for personal finance management
Personal finance management might challenge you today. However, if you accept this challenge and move in the right direction, it pays off with a higher … Read more
Accounting for short term deposit
The accounting for short term deposits depends on if you have received/paid the deposit. So, there can be two situations. You have paid the deposits. … Read more
Accounting for inventory
Accounting for inventory involves different items like accounting for purchase, accounting for work in process, accounting for finished goods etc. Let’s go through each of … Read more
Accounting for sales/sales return
Accounting for sales/sales return is simple and straightforward. There are two possible scenarios when you make sales. The sales may be on credit and on … Read more
Accounting for long term deposit
A long term deposit is when you pay/receive deposit for a time of more than twelve months. The accounting treatment for the long term deposit … Read more
Accrued wages in accounting
Accrued wages are the wages that an employee has worked for. However, the company has not paid them as of the accounting period end. At … Read more
statuatory audit vs.internal audit
Following are the facts for statuatory audit vs.internal audit. Statutory audit Internal audit It is required by law. The provisions of the company ordinance require … Read more
Limitations of Cash Flow Statement
Following are some of the well-known limitations of the cash flow statement. 1-Liquidity assessment Although cash flow statement shows the cash status of the company, … Read more
Audit VS. Assurance
An audit is a process of checking accounting and other information given in the financial statement. For instance, the closing balance of property, plant and … Read more
Qualities of a good auditor
Broadly, there are three qualities of a good auditor, these include knowledge on financial principles & audit processes, certain personality characteristics, and experience in the … Read more
Scope of an audit
The scope of an audit means extent of work the auditor needs to perform. If the scope of an audit is extensive, the auditor needs … Read more