Accounting principles and policies, Auditing

Accounting Principles and Policies

The user of the accounts expects that the accounting principles and policies used will be in conformity with IAS, be generally accepted, be widely recognized and supported and be appropriate and applicable in the particular circumstances.  This is crucial for the auditor to obtain evidence which the accounting policies required are appropriate in the circumstances, so not only acceptable.

Substance over Form          

Transaction should show the commercial reality rather than the legal form.  Therefore these would use which the accounts should display to all the liabilities assets of the organization even if lawfully the liabilities or assets do not relate to the organization.

Presentation and Disclosure

The overall result and final position can only be appreciated by aggregating transactions and balances into suitable classes and categories.  The description provided to these categories and classes must show their own true nature.

Materiality

An item is material if its disclosure or non-disclosure would make any difference to the view received by the user of the accounts.  Therefore fairness is a function of materiality.  Along with trivialities, the accounts must not be cluttered or along with statements or along with amounts which are insignificant to the overall view given through the accounts.  The auditor has to remains the concept of materiality in mind at all times.

Posted Date: 1/24/2013 7:14:52 AM | Location : United States







Related Discussions:- Accounting principles and policies, Assignment Help, Ask Question on Accounting principles and policies, Get Answer, Expert's Help, Accounting principles and policies Discussions

Write discussion on Accounting principles and policies
Your posts are moderated
Related Questions
Stock Taking - Audit Process The procedures for carrying out physical stock taking vary in detail according to the circumstances and size of the business and the life of its

#quInternal Audit checklist for fixed assetsestion..

Question : Describe the methodology and process of conducting an audit. Define audit Describe the methodology of conducting an audit  Describe the process of conduc

Building Societies - Specialized Audit Situation Building Societies are organisations that exist to offer a savings and investment intermediate to the public and to lend to pe

Analyse the ratios in conjunction with the additional information and identify from your analysis, implications for the audit and any particular audit steps that need to be underta

Related Party Transactions Related party transactions-a transfer of obligations or resources among related parties, regardless of whereas a price is charged. A party is rel

You are auditing Pell grant provided to students at six state universities. The Pell grant program is a federal financial aid program for college students. The maximum grant a stud

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

You are the auditor of ABC Company and the audit process is almost complete. The audit report is due to be signed next week. However, the following additional information on two ma

Provision and Accruals Previous to we consider the audit procedures along with regard to accruals and provisions, it is essential to clarify the meaning of two words in genera