Business

Which Factors to be Considered while Vouching?

Which Factors to be Considered while Vouching?

Vouching helps to prove the truth and fairness of account by detecting errors and frauds. It is known as the evidence for the support of a transaction in the books of account. An auditor will examine the efficiency and reliability of internal check before beginning to vouch for cash payments. So.....

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Which Points should be Considered while Vouching of Cash Transactions?

Which Points should be Considered while Vouching of Cash Transactions?

Vouching of a cash transaction is the most important job of an auditor. It is the essence of the Auditing. The object of vouching is to Gain assurance regarding the existence assertion. Before setting the program of vouching, an auditor should inquire carefully into the whole system of internal.....

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Concept of Audit of Impersonal Ledger

Concept of Audit of Impersonal Ledger

Concept of Audit of Impersonal Ledger Impersonal ledgers are also called General Ledgers or Nominal Ledgers. Impersonal accounts refer to real accounts and nominal accounts which are related to a trading account, profit and loss account, and balance sheet. Nominal accounts are related to Tradi.....

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Auditor’s general Duty on Capital Expenditure and Revenue Expenditure

Auditor’s general Duty on Capital Expenditure and Revenue Expenditure

Auditor’s general Duty on Capital Expenditure and Revenue Expenditure Demarcation of capital expenditure and revenue expenditure is an important function of an accountant because such expenses directly affect the income statement and balance sheet. The absence of these will lead to misleadi.....

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Concept of Valuation

Concept of Valuation

Concept of Valuation Valuation is the act of determining the value of assets and critical examination of these values on the basis of a normally accepted accounting standard. It is the analytical process of determining the current (or projected) worth of an asset or a company. Valuation of assets.....

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Concept of Verification 

Concept of Verification 

Concept of Verification  Verification means proving the correctness. One of the main work’s of an auditor is verification of assets and liabilities. It is the act or process of verifying: the state of being verified. Verification is the act of assuring the correctness of value of assets .....

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Significance of Verification and Valuation of Assets and Liabilities

Significance of Verification and Valuation of Assets and Liabilities

Assets and liabilities are very important aspects of the business. Verification means the inspection of assets appearing in financial statements, whether the assets are according to legislation or not. The balance sheet is prepared on the basis of them and an auditor should prove the true and fai.....

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Some Common Methods of Valuation of Assets

Some Common Methods of Valuation of Assets

Some Common Methods of Valuation of Assets Asset valuation is the process of determining the current value of company assets, such as stocks, buildings, equipment, brands, goodwill, etc. Valuation of various assets can be made by using different methods. Valuation of fixed assets can be made in d.....

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Dissimilarities between Valuation and Verification of Assets

Dissimilarities between Valuation and Verification of Assets

Dissimilarities between Valuation and Verification of Assets Valuation and verification of assets are complementary to each other. Valuation implies significant assessment and testing of determined values of assets on the source of its effectiveness during an exacting period. It helps in assessin.....

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Common dissimilarities between Verification and Vouching

Common dissimilarities between Verification and Vouching

Common dissimilarities between Verification and Vouching Verification is made on the basis of vouching. So, verification is a part of vouching. Verification means “to validate” the assets and liabilities of the business. Valuation is made all over the year but verification is made at the end .....

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Audit Report

Audit Report

An audit report is an appraisal of a small business’s complete financial status. The preparation of an audit report is the last work of audit. An auditor presents weakness, strength, and details of an organization by preparing an audit report. Those including financial statements, management a.....

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Contents of Audit Report

Contents of Audit Report

Contents of the Audit Report The auditor should check the books of accounts and balance sheet and need to prepare the audit report addressing to the shareholders and present it to the concerned department and to the company.  An audit report is always critical to influencing the perceived value .....

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