Introduction In this article, we will cover the audit procedures for loan and advances. This includes the objective, key assertions as well as the specific audit procedures for the audit of loan and advances. The auditor should evaluate the client’s internal control system for loans and advances to determine the nature, timing and extent of […]
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Introduction In this article, we will cover the audit procedures for expenses. This includes the objective, key assertions as well as the specific audit procedures for the audit of expenses. Audit of expenses is necessary to perform by testing various assertions including cut-off, completeness, accuracy and occurrence. Auditors should evaluate company expenditures to ensure they
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Introduction In this article, we will cover the audit procedures for revenues. Auditors should place great attention on revenue audit because it is considered one of the most sensitive area. Revenues are sensitive as the most common inherent risk is the possibility of misstatement due to management’s intention to receive a certain level of sales.
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Introduction In this article, we will cover the audit procedures for testing impairment of investment. This includes the objective of auditing the impairment testing, key assertions and then to the specific audit procedures for the audit of the impairment of investment. The consolidation method records ‘investment in subsidiary’ in the parent company’s balances as an
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Introduction Sales price variances can occur both in planning and operational forms. The sales price planning variance is often caused due to uncontrollable or external market factors, while Sales Price Operational Variance occur internally. So what is Sales Price Operational Variance? Definition Sales price operational variance can be defined as: “The difference between product units
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Introduction Fast paced and dynamic market conditions mean the companies need to stay alert and responsive to the changes. Product sales pricing is one of the most crucial decisions to stay competitive or take the market leader position. Management performs budgeting and planning activities to set a standard sale price per unit for each product.
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Overview In this article, we will cover the market size variance or sales volume planning variance and market share variance or sales volume operational variance. This will include the key definition, formula, examples, analysis and interpretation. In addition, the later section also includes the important of sales volume planning and operational variances. Before diving into
Market Size and Market Share Variances: Definitions, Formula and Examples Read More »
Introduction The first and one of the most important elements in an Income Statement is the Sales or revenue of the company. Manufacturing facilities in particular get affected by the volume of production and corresponding sales. Companies always plan a certain volume of product units to sell in period, achieving that target depends on several
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Overview In this article, we will cover the differences between accounting profit and economic profit. Before jumping to the differences, let’s understand the overview as well as the key definitions. The aim of profit-making businesses is to generate profit. This profit is generated when the business makes sales to its customers. Once revenues are generated
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Overview In this article, we will cover the current cash debt coverage ratio. Before jumping to detail of the current cash debt coverage ratio, let’s see the overview , key definition, purpose as well as other areas of such ratio. When stakeholders of a business analyze the position or performance of the business, they use
Current Cash Debt Coverage Ratio: All You Need to Know About! Read More »
