Purchase Walkthroughs – Step by Step
One key area where an auditor may want to focus on for their walkthroughs is the purchase process. This is done to ensure that there are sufficient controls around the …
Journal Entries for Accruals
As discussed in our previous post, the journal entries required for accruals are quite simple. The purpose of an accrual is to recognize an expense before the invoice has been …
What are Accruals for Expenses?
The accruals principle states that expenses must be recorded in the period in which they were incurred, regardless of when they were paid. This becomes especially important around the year …
What are The Journal Entries for Depreciation
Introduction to Depreciation Depreciation charges are a way of spreading the cost of a capital/fixed asset over its useful life. When a company makes a purchase of an item that …
What Do Auditors Do?
The primary job of an auditor is to ensure that the financial statements of a company are free from “material misstatement”. But what does this actually mean? The basic meaning …