An audit is a process that involves a practitioner examining an entity’s records, usually financial, to identify specific information. Usually, the term audit refers to financial audits. In these audits, an auditor examines a company’s financial statements. The purpose of conducting such audits is to identify any misstatements in these statements. However, this objective may […]
Objectives of Internal Audit Read More »
What is an Assurance Engagement? An assurance engagement is a type of assignment that professional practitioners undertake. It involves the expression of an opinion by the practitioner regarding a provided subject matter. Practitioners use suitable criteria to evaluate the subject matter. During this process, they collect sufficient and appropriate evidence. Once they have done so,
Objectives of an Assurance Engagement Read More »
A financial audit is a process in which an experienced professional assesses a company’s financial statements. This process aims to identify any material misstatements that may exist in those statements. Similarly, financial audits seek to ensure that the financial statements present a true and fair view of a company’s financial matters. Financial audits or the
Limitation of Internal Audit Function Read More »
Before taking on an audit engagement, auditors must evaluate their independence and objectivity for it. If any threats exist to these, auditors must determine the appropriate safeguards to employ against them. There are five threats that auditors may find during this process. These include familiarity, self-review, self-interest, advocacy, and intimidation threats. Each of these threats
Auditing is a process in which an independent party examines any entity’s financial information. The purpose behind conducting such examinations is for the party to express their opinion of the information. There are several parties involved in any auditing process. These include the intended users, the responsible party, and the auditor. Who is an Auditor?
Auditor Rights and Duties Read More »
What is an Engagement Letter? An engagement letter is a written agreement used by two parties to enter into a business relationship. One party in this relationship is the client that obtains products or services, while the other party is a supplier. Through an engagement letter, both parties can specify the terms for their relationship.
Audit Engagement Letter: Definition and Content of the Engagement Letter Read More »
An assurance engagement is a type of assignment performed by a practitioner in order to express an opinion about a subject matter against criteria. Usually, this engagement allows the users to base their decisions and obtain confidence over the measurement of the given subject matter. However, the criteria for each assurance engagement may differ from
5 Elements of Assurance Engagement: All You Should Know Read More »
What are Assurance Services? Assurance services involve the independent examination of a subject matter by a practitioner. These professionals usually establish suitable criteria against which they can examine the given subject matter. In most cases, it may include analyzing a business or company’s financial statements or its processes. The primary purpose of doing so is
Types of Assurance Engagement: All You Need to Know Read More »
Stock Warrants are derivatives like Options that give a right but not an obligation to the holder to purchase stocks at a specific date with a set price. The investor in these derivatives can exercise the right to fully subscribe to the shares or let them lapse. Warrants are different from Options in a few
Stock Warrants: Definition, How It Work, Types and More Read More »
A Banker’s Acceptance (BA) is a type of financial instrument that promises a future payment at a certain date from the bank. It is also known as a bill of exchange. A banker’s acceptance is used as a payment instrument in international trade. It comes with additional features of being marketable security. Hence, it can
Banker’s Acceptance – How Does It Work? Read More »
