There are two main services that an internal auditor could offer to the organization. Once is the assurance services, and the second is the consultant service. In assurance service, an internal auditor reviews a number of areas including an entity, operation, function, process, system, or other subject matters. The opinion or conclusion will be provided […]
What Are the Assurance Services Provides by Internal Auditor? Read More »
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness risks management, control and governance processes. The above is the definition of internal audit and this definition
Who should the internal audit leader functionally report to? Read More »
There are two main types of assets a business entity holds when it comes to consumption. Some assets are fully consumable and do not have any value at the end of their useful life. On the other hand, some assets are not fully consumable and are left with a residual value at the end of
How to Calculate the Residual Value of Fixed Assets? Read More »
Fixed assets are normally referred to as property, plant, and equipment with a useful life of more than one year. In order words, they are expected to be converted into cash in more than one year due to their usages. Fixed assets costs are not directly charged into the entity’s income statement immediately when purchasing.
How Often Should Fixed Assets’ Useful Life be Reviewed? (Explained) Read More »
Overview: IAS 16 Property, plant, and equipment are the standard that deals with depreciation. Under this standard, an entity must depreciate fixed assets and then charge these depreciation expenses to its income statement in the period the entity uses those assets. Under this standard, depreciation starts when fixed assets are ready for us, and depreciation
What Are the Acceptable Depreciation Methods as per IFRS? Read More »
Overview: Income statement presents the results of the company’s operations for a specified accounting period. Accounting periods may be quarterly or yearly as required by laws and regulations. Income statement examines the income and expenses in a particular accounting period and finally arriving at net profit. The financial performance of the business in terms of
What Are the Limitation (Disadvantages) of Income Statement? Read More »
Overview: An income statement presents the results of the company’s financial operations for a specified accounting period. Accounting periods may be quarterly or yearly as required by laws and regulations. This statement records the income and expenses in a particular accounting period and finally arrives at net profit. This statement records the income and expenses
What are the Advantages of Income Statement? 6 Advantages You Should Know Read More »
Overview: Financial statements include generally Profit and Loss Account, Balance Sheet, Cash Flow Statement, and Statement of Changes in Equity. Notes to financial statements aid the interested stakeholders in understanding the various items of financial statements. Financial statements are normally prepared annually and at the end of the financial year, these are audited by a
What Are the Limitation (Disadvantages) of Financial Statements? Read More »
Overview: Financial statements present the financial activities and health of the business clearly and concisely. Financial Statements include income statements, balance sheets, cash flow statements, and statements of retained earnings. However, further disclosures are made as per relevant laws, regulations, and as required by the accounting standard that is used. Financial statements record all the
5 Advantages of Financial Statements You Should Know Read More »
Overview: A Balance Sheet is one of the financial statements that lists business assets, liabilities, and owner’s equity on a specified date. It is a synopsis of the business’s financial health as of the last date of the accounting period. The Balance Sheet is also called the Statement of Financial Position, and it lists out
What Is the Limitation (Disadvantages) of the Balance Sheet? Read More »
