Auditing Retained Earnings and Dividend

Meaning of retained earnings The company operates in a business environment and strives to obtain higher and higher profits each year. The net profit is obtained by deducting the expenses from the revenues. These net profits are appropriated to reserves and surplus....

Risks of Material Misstatement of Revenues

What is Revenue? Revenues that the entity recognizes in the income statement during the year are income that the entity sells the goods or services to its customers. These revenues are recognized when the control is passed from the entity to its customers. It is...

Search for unrecorded liabilities

Meaning for the search for unrecorded liabilities Search for unrecorded liabilities is the audit testing procedures that auditors perform to verify if the liabilities are understated by completely not recording it. Such tests of the search for unrecorded liabilities...

Risk of Material misstatement of investment:

Overview The Risk of material misstatement requires that the auditor must identify and assess the risk of material misstatement at the financial statement level, individual account level, and provide disclosure of performing different audit procedures. Risk of...