Planning Materiality: Definition, Example, and Calculation

Audit

Definition: Planning materiality basically refers to the misstatement amount set by auditors at the planning stage of an audit based on the materiality to financial statements. Planning materiality used by the auditor to assess whether the misstatement as individual or aggregate materially misstated in the financial statements. And those misstatements could be misleading the users […]

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5 Best Fraud Management, Fraud detection, and Fraud examination Books:

Books

Overview: Best Fraud Management, detection, and examination Books review: Fraud is the entity’s cancer that can’t be cure and could lead the entity directly to its bad day. Fraud happens in many form and cause by many different reason. Mostly said, it came from opportunity, Rationalization, and financial pressure. Having the good fraud management program

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How to Increase or Decrease the Return on Equity Ratio? 6 Areas That You Can Use

Equity Ratio

Overview: Return on equity is the ratio that to use to measure the performance that an entity could generate over the period to its total shareholders’ equity. This ratio uses the bottom line of the entity over the period compared to the averages total shareholders’ equity. The good or bad ratio is depending on the

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What Are Recognition criteria of liabilities in balance sheet?

Balance Sheet, Financial Statements

Definition: Liabilities are the present obligation of the entity in the form of legally enforceable and result from past events. Liabilities will have future economic outflow from an entity. Those liabilities including account payable, salary payable, noted payable, accrual liabilities, short term loan, and long term loan. If the entity financial statements are prepared according

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What are the Recognition Criteria for Assets in the Balance Sheet?

Balance Sheet

Definition: Assets are resources that control by the entity and those resources are expected to have an economic inflow into the entity in the future. Those assets included cash, account receivables, care, computer equipment, land, building, and other resources the entity controls. The balance sheet is one of five financial statements that report the entity’s

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What is a Substantive Audit Approach? (Explanation & Example)

Audit, Audit Approaches

Definition: Substantive Audit Approach is one of the audit approaches used by auditors to verify the event and transactions in the financial statements by cover the larges volume of them. The principle of substantive audit approach is that when auditors cover the larges volumes with a high value of financial transactions and events in financial

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Transportation costs on the income statement (Explained)

Financial Statements

Definition: Transportation costs recorded in the income statement are the costs related to the entity’s transportation of goods to customers or suppliers. These costs include the cost of transporting goods from warehouses to customers by a delivery man, trucks, ships, and freighting costs. There are two main differences in transportation costs, where one of those

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