Audit Objective: The primary objective of an audit of financial statements is to let auditors work independently and objectively to review the financial statements and express their opinion based on the result of evidence obtained. The audit opinion and audit report are really mean to the users of financial statements. The users of financial statements […]
Main Objective of Financial Statements Auditing Read More »
Definition: Internal Audit Objectivity or objectivity is one of the internal audit codes of ethics that requires the auditor to stay unbiased and highly disciplined in all conditions. The auditor should eliminate or remove all conditions or factors that could impair their professional judgment. Two main factors auditors need to consider to ensure that they
Internal Audit Objectivity – What Is It? And Why Is It important? Read More »
Confidentiality is one of the most important of internal audit’s code of ethics that required the internal auditors to keep information that they obtain from clients during their audit confidential. In other words, the information should not hand to people that are not authorized to access it. Normally, the internal auditors could have the right
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Overview: The balance sheet is one of the most important elements of financial statements. This statement shows the entity’s financial position at the point in time. What we mean by financial position is that this statement tells us how the entity’s assets, liabilities as well equity are at a specific time frame. For example, if
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The internal auditor is the entity’s staff that work independently and objectively. This role normally reports directly to the audit committee and board of directors of an entity. However, there are certain things that internal audit should report to senior management of the entity like CEO and CFO. For example, the internal audit might report
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Overview: Internal audit performs independence and objectives activities from the organization while its main objective is to play an important role in helping the organization to meet its primary goal. In other words, to meet the organization’s vision and mission. The important approach that an internal audit uses to ensure that its activities are added
Strategic Roles of Internal Audit – What Are They? Read More »
Internal audit integrity stays number one among the four internal audit codes of ethics. Based on the code of ethics, integrity simply means honesty to their own ethic, the company’s policy, shareholders, and the public (For some cases). Integrity will help the internal auditors to earn better trust in their professional judgments, and activities by
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Overview: Provision for bad debt is the current assets account in the balance sheet that uses to records the provision for bad debt that the entity provides to account receivables that collection likelihood is high. This account is similar to accumulate depreciation that use to records the accumulation of depreciation to show the carrying value
What is the difference between accounts receivable and provision for bad debt? Read More »
Accrued revenues and accounts receivable are the current assets that are reported in the balance sheet of the company. Accrued revenues, sometimes called contract assets are the revenues that a company accrued on the basis that they expected to receive from the goods or services that they already provided, but not yet billed. Account receivable
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Overview: Account receivables are the amount owes by other entities or people as the result of purchasing goods or rendering services without making payments at the time goods or services are delivered. This happens when the entity sells its goods or services to the customer. In daily business activities, the customers would love to purchase
What are Accounts Receivable? (Overview, Example, Recognition, And Important) Read More »