What are analytical review procedures?
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
What Is Operational Audit
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
Trading Account in Accounting
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
Economy Pricing Strategy
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
Provision For Income Tax
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
Company Infrastructure
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
What is Feedback Control?
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
Accounting conventions (Definition, Importance, Examples)
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
Component auditor (all you need to know)
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
List of current assets (Definition, Formula, and Examples)
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
What is a Compliance Audit?
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
What is bank confirmation letter?
Bank confirmation letter is used by the bank to confirm the nature and balance of the cash at bank. Generally, bank confirmation is used by … Read more
What are accumulated losses?
Definition Accumulated losses are losses incurred by the business in the past. These losses are adjusted against shareholders’ equity. These losses lead to a decrease … Read more
What is retained earning?
Retained earning is referred to profit retained by the business. It’s the profit that has not been distributed among shareholders; instead, it has been reinvested … Read more
What is a period cost?
Definition Period cost is the cost that is not based on the one-time transactional event rather it is incurred over specific time. These costs are … Read more
Is Human Resource Management a Good Career path?
In this era, choosing a right field for study can be a tough thing. Many people will advise you to follow your passion. The problem … Read more
What is a Corporation?
Businesses operate in different forms including sole proprietorship, partnership, LLC, and corporation. A corporation is the highest form of business organization that involves the greatest … Read more
What is test of control? (External audit perspective)
Test of control in audit is performed to evaluate internal controls implemented by the business/audit client. If the client has strong internal controls, the external … Read more
Advantages and disadvantages of corporation
Definition of corporation The corporation is a separate legal entity. It is considered a legal person who can hire employees, sue, be sued, pay taxes, … Read more
What is Paid-in capital?
Definition Paid-in capital refers to capital raised by the company against the sale of its equity. There are two components of paid-in capital. These components … Read more