Conformity and conservatism - external auditor report, Auditing

Conformity and Conservatism - External Auditor Report

Conformity

Although the user of the accounts expects the accounts to conform to general accepted accounting principles and the IFRSs, simple rigid conformity can lead to a misleading view. Since whether we simply included profits from overseas branches and if those benefits are not obtainable to shareholders because of exchange control restrictions, so then the accounts would be as misleading.

Conservatism

The concept of prudence is highly esteemed in the accounting profession.  However, taken to extremes it could result in accounts not giving a true and fair view as in the case of long term construction contracts, contingent liabilities and in substance over form transactions.  An accountant is a pessimist through nature since the auditor must guard against over conservatism.

Posted Date: 1/24/2013 7:14:10 AM | Location : United States







Related Discussions:- Conformity and conservatism - external auditor report, Assignment Help, Ask Question on Conformity and conservatism - external auditor report, Get Answer, Expert's Help, Conformity and conservatism - external auditor report Discussions

Write discussion on Conformity and conservatism - external auditor report
Your posts are moderated
Related Questions
Control Problems in Charities 1. Door to door collections : Volunteers should be mattered along with numbered boxes, the boxes should be sealed, and the boxes should be

An audit helps stay track of where the currency or money is going and makes sure the money is going anywhere it is believed to and not in someone''s pocket. An audit may also help

Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

List the internal controls that should be in effect solely because a EDP system is employed, classifing them as (1) Those controls pertaining to input of information and (2) All ot


For each threat explain how it might be avoided.

Q. Explain about Wash Sale? Wash Sale - A wash sale takes place if stock or securities are sold at a LOSS and seller acquires substantially identical stock or SECURITIES 30 day

how to calculate materiality given the acoountin period information

Preferred stock valuation 1. Features of preferred stock (You may review what you've learned about preferred stock from TCA 221): a. Multiple classes in terms of convertibil

AsList and define five audit procedures for obtaining audit evidence. (ii) Why is it necessary to obtain corroborating evidence for inquiry and observation? (iii) What is the dif