What are audit assertions?
Definition Audit assertions are claims made by management that financial statements are accurate and do not contain any errors. Here, auditors’ work begins and they … Read more
Definition Audit assertions are claims made by management that financial statements are accurate and do not contain any errors. Here, auditors’ work begins and they … Read more
Definition In an audit, know your client means an auditor needs to understand client business. The understanding needs to be obtained from different perspectives including … Read more
Definition Auditors perform audit procedures to obtain sufficient and appropriate audit evidence on the identified risks. Generally, auditors understand business, assess the risk of material … Read more
Definition Audit scoping refers to the process of setting extent, nature, and timing of audit procedures to be performed. The scope of auditing is dependent … Read more
The term Quality control review is widely used in the world of accounting and auditing. It aims to enhance the accuracy of implemented controls in … Read more
People often put off their business idea because bookkeeping and accounting scare them. We understand it can be tough and technical to do tax and … Read more
Definition Cut off testing refers to determining if accounting entries are recorded in the correct accounting periods. The purpose of this exercise is to determine … Read more
Definition Target costing is a systematic way to set product price. It considers the current market price and desired profit to set production cost. It … Read more
Substance over form principle states that transaction should be recorded based on realism (substance). If there is a conflict between realism and form (legal aspects), … Read more
Definition The auditor performs analytical review procedures during audit execution. As the name suggests, it’s analytical. It means numbers are compared with other numbers by … Read more
An operational audit is conducted to evaluate the performance of a company’s operations. It includes both day-to-day activities and broader-scale activities. This type of audit … Read more
The name trading account is given to a ledger account used by trading business firms to aid in the formation of income statement and balance … Read more
What Is Economy Pricing Strategy? Economy pricing strategy is one of the four pricing strategies that a company might choose depending on its needs, goals, … Read more
At the end of the accounting period, the businesses need to record a provision for income tax. The provision is recorded to fulfill the accrual … Read more
Definition Company infrastructure refers to the structure of services, facilities, and procedures/policies used by a business. In fact, the foundation of business is based on … Read more
Definition Feedback control is a control system that relies on feedback for analyzing the discrepancy between actual and desired performance so that improvements can be … Read more
Definition Accounting conventions are the set of guidelines that companies use to record financial transactions. These conventions play a vital role in the entire accounting … Read more
Definition The component auditor is the one who works on the financial information of the component. In simple words, the component auditor performs the audit … Read more
Current assets are those asset of the business that can be liquidated easily. In simpler terms, the assets that can be easily converted into cash … Read more
Definition A compliance audit is an assessment carried out, mostly by third party auditors, to examine the extent to which a company’s internal policies, procedures … Read more