External audits are mandatory under various jurisdictions, in particular for public companies. Even when there are no such regulatory requirements, some stakeholders, such as banks, may ask for external audits. There are several reasons why external audits are advantageous. Most importantly, these assure the users of the financial statements about the true and fair presentation. […]
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For companies and businesses, controls are necessary for safeguarding assets and mitigating risks. These are crucial as they dictate the efficiency of the effectiveness of the company’s operations. On top of that, internal controls also help in the financial reporting systems in a company. For companies, having a system of internal controls is highly crucial
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For any company or business, having an internal control system is crucial in avoiding and eliminating risks. Internal controls are a set of instructions, rules, procedures, mechanisms, or processes that help in this regard. Internal control systems are also crucial for the financial reporting process that companies follow. There are several benefits of having an
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A straight bill of lading is a type of shipping document that is used to deliver shipments to a particular consignee. This type of B/L is paid upfront and comes with a non-negotiable clause. It means only the consignee can receive the delivered goods and the right to receive goods cannot be transferred to a
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A clean bill of lading confirms the secured possession of shipping goods in international trade. It is issued by the carrier of goods as a receipt to the exporter. It is then presented by the importer along with other shipping documents such as an invoice and a letter of credit to claim the possession in
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A bullet loan is a type of loan that requires a large lump sum repayment at maturity. It is also called the interest-only or a balloon loan. Bullet loans offer several advantages to borrowers. These loans are often used in the real estate sector. Companies use these loans to fund specific projects or equipment leasing.
What is a Bullet Loan? All You Need to Know Read More »
Plain vanilla is a term in finance used for securities without special features. The Plain vanilla concept may apply to Options, Futures, Swaps, and Bonds. It depicts the simplest of the forms for financial instruments and securities. It means there are no special features attached to a financial instrument such as a Call or Put
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Deferred coupon bonds do not offer periodic interest payments. These bonds offer a deferred and accrued interest payment after a certain date, often at maturity. The interest payments can be deferred until maturity or a certain period. Deferred coupon bonds are a good investment tool for investors looking for capital gains. However, it does not
Deferred Coupon Bonds: Definition, How It Works, Types and More Read More »
What is an Audit? An audit is a term that refers to the process of auditors examining a company’s financial statements. Through this process, auditors aim to evaluate the financial statements to ensure accurate and fair presentation. Similarly, it seeks to ascertain that these statements meet the criteria set by the applicable financial reporting framework.
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Corporate governance is a set of rules, practices, processes, and regulations which specify how companies should operate. It is the system through which companies are directed and controlled in the interests of shareholders and other stakeholders. Usually, this direction and control come from the company’s management. However, there are some external factors that may influence
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