What is a Walkthrough Test? A walk-through test is an audit procedure used by an auditor during an auditing process to gauge the reliability of the accounting system used in the company. Walk-through Test helps trace transactions within the company to trace all the relevant double entries completed from the initial part of the transaction […]

What are Material Misstatements? Material Misstatements can be defined as inconsistencies in the accounting system, which are significant enough to influence the decision-making ability of the user of the financial statements. Material Misstatements imply that the financial figures that have been disclosed in the financial statement, including the income statement (or the balance sheet), are

Controls protect an entity’s assets against fraud or severe loss, preserve the integrity of financial data and transactions and assure financial, accounting, and regulatory compliance when properly designed and implemented. Having adequate controls in place is just half the fight; after these controls are in place, an entity must have policies and processes in place

Controls are required for entities and organizations to protect assets and mitigate risks. These are very important because they determine the efficiency and efficacy of the entity’s operations. Furthermore, internal controls play an important role in an entity’s financial reporting processes. Therefore, controls are put in place by most entities with the expectation that they

What is accounting? Accounting can be defined as the task of tracking, reporting, and subsequently analyzing financial transactions. It covers areas ranging from financial reporting to the preparation of tax returns to be filed annually. Accounting is basically a tool that helps to analyze the company’s profitability after drawing a comparison of the sales revenue

Definition of Vouching Vouching is a procedure that auditors use to authorize the credibility of the entries allowed in the books of accounts. In other words, it is the documentation that helps the auditors to check the authentication and the accuracy of the documents that the client has presented. During the audit process, the auditors

What is an Auditing Clerk? The financial Audit of any particular organization comprises several different avenues that should be covered to ensure that auditors can get sufficient evidence, based on which they can give their opinion on the company’s financial statements. The scope of audit work is considered quite expansive, essentially because significant groundwork needs