Overview: Vacations normally go more smoothly when you have made good reservations and also researched your destination. Purchasing a car is simpler when you have done all your homework on the car model and also made some early inquiries to line up the financing. It is a fact of life that in several processes of […]
ADVANTAGES AND DISADVANTAGES OF AUDIT PLANNING Read More »
Definition: A tax audit is the official examination or audit of the tax department of the tax return that declares by taxpayers as required by law. Different countries and different jurisdictions may have different laws and requirements due to the tax audit process. In general, taxpayers declare their tax returns monthly and annually to the
Tax Audit: Definition, Example, Explanation, and Types Read More »
Definition: Value for money audit is an independent examination of an audit to assess whether the use of funds or resources is at the economy, efficiency, and effectiveness. Auditors will assess the use of resources and funds against the intended objective, purpose, vision, and mission of projects, entities, or organizations. This kind of audit service
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Definition: Financial statements auditing is the review of an entity’s annual financial statements for the purpose of allowing an independent auditor to express their opinion over the true and fair view in preparing and presenting financial statements again the specific accounting standard and framework. The financial statements that auditors will review are the balance sheet,
Financial Statements Auditing – Definition, Purpose, And Phases Read More »
Overview: Auditing of financial statements is normally performed by audit firms based on the engagement request by the entity. The entity needs its financial statements audited annually sometimes based on the law or sometimes based on its requirements. A big corporation is normally required by law and small business with low turnover and staff is
Limitations and Advantages of an Audit of Financial Statements Read More »
Statutory Audit: A statutory audit is the engagement of an audit of financial statements by independent auditors to the entity’s financial statements in compliance with the local law that the entity is operating. In most countries or territories, the audit of financial statements is required by law or status. And the entity that operated in
Statutory Audit and Non-Statutory Audit (Explained) Read More »
Assurance engagement normally involves three parties and consists of five important elements. Those five elements include criteria, report, evidence, subject matter, and three-party relationship. Here is the detail: 1) Criteria: What are the criteria for the engagement? For example, if the engagement is the audit of financial statements, then the criteria would be the standards
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Definition: Inherent audit risks are the risks that the material misstatements could happen in financial statements due to other reasons rather than the failure of internal control over financial reporting as well as detection risks. Many reasons lead to increased inherent risks in the audit of financial statements. Those include the complexity of elements being
Inherent Audit Risks – Definition, Example, and Explanation Read More »
Overview: The audit procedure is one of the most important things that auditors need to ensure that they are well and correctly prepared, tailored, and executed to minimize audit works and reduce audit risks. Sales revenues are one of the sensitive areas that auditors need to place their great attention on since it is the
Audit Procedures for Testing Sales Revenues (Risks and Assertions Included) Read More »
Overview: Depreciation expenses are one of the significant expenses that reporting in the company’s income statement. Those expenses are the costs that the entity charged to fixed assets used for operation during the periods through depreciation by using the systematic methods accepted by certain accounting standards. In the income statement, depreciation expenses are allocated in
Audit Procedure For Depreciation Expenses (Risks and Assertions) Read More »