Audit Archives - Page 10 of 20

Audit Procedures for Goodwill (The Main Procedures You Should Know)

What is goodwill? Goodwill is normally considered intangible non-current assets in the consolidated statement of financial position when a company purchases another company where the fair value of the company’s net assets is less than purchase consideration. The difference is considered goodwill. For example, ABC Co purchased 100% of DEF Co shares for USD 500,000 […]

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Audit Procedure for Accrual (Explanation, Assertion, and Procedures)

Audit Procedures

Overview: In accounting basics, most businesses normally use one of two accounting basics to record accounting transactions in the system, cash basis or accrual basis. It is depended on the nature of the company whether they use a cash basis or an accrual basis. A cash basis is a method that the book is kept

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Audit Procedure for Advertising Expenses: (Risks and Assertions Include)

Audit Procedures

Overview: Advertising expense is one of the operating expenses that joint with other expenses to operate the business. To perform effective and sufficient testing on this expense, the auditor has to focus on both controlled testing and control validation. Firstly, the auditor has to perform understanding and study on overall picture of advertising expense before

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What Are the Audit Assertions? Definition, Types, And Explanation

Audit

Definition: The implicit or explicit claims by the management on the preparation and appropriateness of financial statements and disclosures are known as management assertions. It is also known are financial statements assertion or audit assertion. In other words, audit assertions are sometimes called financial statements Assertions or management assertions. It means that management implicitly or

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What is The Audit Cycle? A Step by Step Explanation

Audit

Introduction: To know about the audit cycle in detail, we need to have a brief concept of what audit is. An audit is an arranged process without any bias, conflict of interest or external pressure that checks or review the books, financial statements, legislation and other authority’s guidelines, and critical disclosures which are important to

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Audit Procedure for Borrowings: Risks, Controls, Assertions, and Procedures

Audit Procedures

Overview: To perform effective and sufficient testing on borrowings is not only focus on control testing but also focus on control validation by selecting some supporting document for vouching. The auditor could use different methods and amounts of sample to be vouched based on the risk assessment result. There is a good start for understanding

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Key Roles of an Audit Associate (Explanation and Guidance)

Audit

The critical roles of an audit associate revolve around assisting the senior auditors or manager in auditing and compliance activities. Usually, the audit associates are well equipped with auditing procedures and standards. Audit associates are mainly responsible for the business analysis, preparation, and review of accounting and documentation of audit evidence, ensuring minimum firm standards

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Audit Committee’s Report: Purpose, Process, and Key Points To Include

Audit, Audit Committee

Introduction: The audit committee includes specialized members who are externally hired independent directors of the company. They keep an overview of the executive directors and review the company’s financial reports and their performance. Audit committee reports are the reports published by the audit committee of the company, which gives an overview of the company’s accounting

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Audit Committee Terms of References (Guidance)

Audit, Audit Committee

Overview Corporate governance rules require companies to adhere to the requirements of the audit committee. The Board of Directors is responsible for appointing an audit committee. The audit committee can comprise several members and must follow specific terms of reference. The terms of reference for an audit committee provide a guideline to the scope and

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WHAT IS THE AUDIT COMMITTEE CHARTER?

Audit, Audit Committee

The audit committee charter is a document that is designed to illustrate common or leading practices. The main purpose of this is to encourage customization. It comprises the following parts. ORGANIZATIONAL PRINCIPLES The Audit Committee charter is supposed to have certain organizational principles, which should ideally provide an introduction, background, purpose, mandate, authority, composition, information

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