Attempts to define true and fair, Auditing

Assignment Help:

Attempts to define True and Fair

It must be concluded that there has been slight attempt precisely to define fair and true.

The Companies Act needs an auditor to report in fair and true view terms as relates the profit and loss account and balance sheet.  The Companies Act since, does not define that what constitutes a fair and true view.  We have no decided case anywhere or in Kenya or in the world that has given a definition of fair and true view.

It has therefore been left to the profession to try to define the meaning of true and fair view or at least to determine what not a true and fair view is.  The Companies Act in the 6th Schedule provides the minimum disclosure needs of items in profit and loss account and the balance sheet.  It would therefore seem to follow that compliance along with the needs of the 6th Schedule, thus would result in the accounts providing a fair and true view.


Related Discussions:- Attempts to define true and fair

Risk of material misstatement, For each of the following situations, descri...

For each of the following situations, describe how risk of material misstatement should be assessed and what effect the assessment will have on detection risk. (i) Johnson is a

Explain about wash sale, Q. Explain about Wash Sale? Wash Sale - A wash...

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

Corporate governance, what are requirements for a company to comply with ki...

what are requirements for a company to comply with king code?

Non-adjusting events - audit process, Non-Adjusting Events - Audit Process ...

Non-Adjusting Events - Audit Process Non-adjusting events are those that are indicative of conditions such arose than the balance sheet date as a decline in the market price o

Internal control, Ask question #MA. Evaluate the strengths and weaknesses o...

Ask question #MA. Evaluate the strengths and weaknesses of preview Company''s control environment B. What factors in Preview company''s control environment have led to and facilit

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

Valuation of debtors, Valuation of Debtors Debtors are valued simple l...

Valuation of Debtors Debtors are valued simple like other assets at the lower of cost and total realisable value. Valuation of debtors is actually a consideration of where the

Marginal costing, methods of determining break even point

methods of determining break even point

Intangible asserts, Suppose soyola cooking oil company takes over ZamGold c...

Suppose soyola cooking oil company takes over ZamGold cooking oil for an amount in excess of the value $500,000. A) What intangible assert will Soya create in its books which the a

Explain basic principles of an internal audit control system, The core prin...

The core principles of financial internal control are explained here: accounting and financial operations can be separated and the main purpose is the handling of cash and the copy

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