Amounts derived from financial statements, Auditing

Amounts Derived From Financial Statements

Please note here the auditor is interested in preceding year's evidence since

1. The Companies Act states such corresponding amounts should be disclosed in respect to every item in a company's balance sheet and loss and profit account for the financial year preceding that to that the balance sheet and loss and profit account relate. IAS 7 needs similar information for the cash flow statement.

2. These figures from the opening position from that the present years are derived. The auditor might be assured such the opening figures have been appropriately brought forward.

3. Accounting policies must be useful constantly from year to year.

4. Corresponding amounts must be displayed and the auditor should seek evidence such they are properly exposed.

The auditor is not utilized to express an opinion on the corresponding to figures; however he is responsible for ensuring such they are

a) The amounts that appear in the previous year's accounts or;

b) They have been restated to get comparability and consistency or;

c) They have been restated because of a change in accounting policy or the improvement of a fundamental error as required through IAS 8.

Posted Date: 1/28/2013 1:19:49 AM | Location : United States







Related Discussions:- Amounts derived from financial statements, Assignment Help, Ask Question on Amounts derived from financial statements, Get Answer, Expert's Help, Amounts derived from financial statements Discussions

Write discussion on Amounts derived from financial statements
Your posts are moderated
Related Questions
Ownership and Existence - Verification Procedures Establishment of title and beneficial ownership of investments is not convincingly possible. Conversely, evidence is obtainab

Presentation and Disclosure - Audit Process Specific presentation involves presentation in accordance along with the suitable IFRS/IAS or International Accounting Standards.

The assignment continues the research process by further exploring and defining the problem statement through the development of research objectives. These objectives will allow yo

Ask quesThe following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Co

International, Assurance Auditing, Standards Board (IAASB) The prologue to the International Standards on Quality Control, Auditing, Assurance and Related Services is issued to

Valuation - Long Term Contracts The basis of valuation should be cost plus attributable profit as benefits less foreseeable losses and progress payments both receivable and re


auditor is a watch dog not a blood hound

Specialized Audit Situations Companies carry on thousands of different types of trade, business or professional activities.  It is not possible in a manual on general auditing

IAS 27 - Audit Process IAS 27 applies to the presentation and preparation of consolidated financial statements for a group of entities within the control of a parent. It as w