Audit and Assurance in Auditing: What Are They? And How Does it Work?

Accounting Principle, Audit

What is Audit? The company’s management, board of directors, and shareholders hire qualified, competent, and independent audit firms (usually called CPA firms) to conduct the audit of the financial statements of their company for a specific period (usually from...

Modified Cash Basis And Why Use Modified Cash Basis Accounting?

Accounting Principle

Introduction: A modified cash basis of accounting, also known as the hybrid basis of accounting is a bookkeeping method that tries to get the best of both worlds i.e. cash basis and accrual basis accounting.  Cash basis accounting: A bookkeeping method in which...

Reliability Principle in Accounting: Definition | Example | Explanation

Accounting Principle

Definition: Reliability Principle is the accounting principle that concern about the reliability of financial information that records and present in the entity’s financial statements. The principle of the reliability principle is that the transactions or event...

Monetary Unit Assumption: Definition | Explanation | Example

Accounting Principle

Definition: Monetary Unit Assumption is the accounting principle that concern about the valuation of transactions or event that entity records in its financial statements. In Monetary Unit Assumption, transactions or event could be recorded in the Financial Statements...

Materiality Principle in Accounting: Definition | Explanation | Example

Accounting Principle

Overview Materiality Principle or materiality concept is the accounting principle that concern about the relevance of information, and the size and nature of transactions that report in the financial statements. The main objective of the materiality principle is to...

Full Disclosure Principle: Definition | Example | Checklist

Accounting Principle

Definition: Full Disclosure Principle is the accounting principle that requires an entity to disclose all necessary information in its financial statements and other related signification. This is to ensure that the users of financial information are not misled...