Audit and Assurance

Inventories are a significant component of a company’s assets and are often subject to frequent fluctuations. Thus, the proper recognition, measurement, and presentation of inventories are crucial for financial statement users to understand a company’s financial position and performance. In this article, we will discuss the accounting treatment of inventories, audit risks, audit assertions, walkthrough […]

Equity is one of the important components of a company’s financial statements that represents ownership in the company. As equity is a critical aspect of a company’s financial health, auditors need to perform a thorough and accurate examination of equity transactions and balances to provide assurance to stakeholders that equity transactions are recorded and reported

Education is a vital sector for any economy and hence the need for effective and efficient auditing of educational institutions. Auditing of the educational sector is different from other sectors, as the primary focus of educational institutions is not just to make profits but also to impart knowledge to the students and prepare them for

Dividend income is recognized in the financial statements when the right to receive payment is established. The right to receive payment is established when the company has declared the dividend and the shareholders have the right to receive payment. The amount of the dividend income is usually determined by the number of shares held by

Development costs are costs incurred by an entity in the process of creating an intangible asset, such as software development, product design, and research and development. According to accounting standards, development costs are recognized as an asset only when the following conditions are met: Once these conditions are met, the development costs should be capitalized

Agricultural products are usually accounted for under the accrual accounting method, where revenues are recognized when earned and expenses are recognized when incurred, regardless of when the cash is received or disbursed. For example, when crops are grown, the costs incurred are recorded as expenses, and when the crops are sold, the revenue is recognized.

The disposal of a subsidiary is a significant event for a company, and as such, requires a careful and thorough audit approach. This article will cover the accounting treatment, audit risks, audit assertions, walkthrough testing, a test of control, and substantive audit procedures for auditing a subsidiary’s disposal. Accounting Treatment: The disposal of a subsidiary

Deferred revenue, also known as unearned revenue, refers to the amount received by an entity in advance for goods or services that have not yet been delivered. It is recognized as a liability in the balance sheet until the goods or services are delivered. In accordance with International Financial Reporting Standards (IFRS), deferred revenue is

Deferred tax is a liability that arises due to the difference between the financial reporting tax base and the tax base used for tax purposes. The purpose of deferred tax is to ensure that the company’s taxable income in a future period matches its taxable income for the current period. Deferred tax is recorded as

Deposits are one of the most important liabilities that a business holds and they require a comprehensive auditing procedure to ensure their accuracy and completeness. In this article, we will discuss the accounting treatment, audit risks, audit assertions, walkthrough testing, a test of control, and substantive audit procedures for deposits. Accounting Treatment Deposits are generally