The Audit Procedures for Expenses: Practical Guides to Audit Expenses

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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Audit Procedures for Revenues: Practical Guides to Audit Revenues

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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Audit Procedures for Testing Impairment of Investment

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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What is Sales Price Operational Variance?

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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Market Size and Market Share Variances: Definitions, Formula and Examples

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 …

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What is Sales Volume Variance?

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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