Accounting principles and policies, Auditing

Assignment Help:

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.


Related Discussions:- Accounting principles and policies

Walkthroughs for auditor, Q. Walkthroughs for auditor? Walkthroughs pro...

Q. Walkthroughs for auditor? Walkthroughs provide the auditor with evidence to: 1. Confirm auditor's understanding of the process flow of transactions. 2. Confirm auditor

management functions and the audit, Describe the management system within ...

Describe the management system within your case study business. Assess the risk of fraud in this business, and suggest methods for detection Management system in this ca

Goodwill, How would you value the Goodwill

How would you value the Goodwill

Basic elements of a management representation letter, Basic Elements of a M...

Basic Elements of a Management Representation Letter Whenever requesting a management representation letter, such the auditor would request which it be addressed to the audi

Audit of accounting estimates, Audit of Accounting Estimates An accoun...

Audit of Accounting Estimates An accounting estimate is described in ISA 540 Audit of Accounting Estimates as 'an estimation of the amount of an item in the absent of a precis

Tangible non current assets, Tangible Non Current Assets The verificat...

Tangible Non Current Assets The verification approach is fundamentally similar in each of these.  Extensive disclosure is utilized in most countries and IAS 16 Property Equipm

What are the benefits of internal audits, An audit helps stay track of wher...

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

AGENCY THEORY, The agency relationship between absentee owners and managers...

The agency relationship between absentee owners and managers produce a natural conflict of interest.what does it mean?

Preferred stock valuation, Preferred stock valuation 1. Features of pre...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd