Mindblown: a blog about philosophy.

  • The Main Purpose of Auditing – (You Should Know)

    An audit is a process where independent accounting professionals perform verification of all material information in the financial statements through assessing financial and non-financial data. This process will end with the accounting professionals issuing an opinion on whether the information is true and fair. The opinion of auditors is expressed in the form of an […]

  • Auditing Goodwill – Risks, Assertions, and Procedures

    Overview Audit of financial statements tends to be one of the most important tasks and objectives that need to be undertaken by listed and unlisted companies so that their investors have certainty that the financial statements have not been materially misstated. To ensure that the auditing process is properly carried out, it is important to […]

  • Auditing Cash Sales – Risk, Assertions, And Procedures

    Overview: Despite the ongoing trend to move businesses online and to convert transactions into electronic forms, there are still a lot of entities out there that are operating mostly in cash, meaning to say, Cash Sales are still a major part of of their businesses. These entities are usually retail businesses that are operating on […]

  • Auditing Loans and Advances – Risk, Assertions, And Procedures

    Overview: Loans and advances are other forms of financial liabilities with their accounting treatment scoped under IFRS 9 Financial Instruments. Auditors are very likely to come across Loans and Advances when auditing an entity as they are some standard instruments most businesses use to finance their new ventures or working capitals. Risks: Before we can […]

  • Auditing Cash Disbursements – Risk, Assertions, And Procedures

    Overview: Auditing Cash Disbursements is an important part of the work performed when auditing cash and cash equivalents. It allows the auditor to see how the entity pays its bills, whether it has been doing it in accordance with its internal policies and records it following the applicable accounting standards. Let us look into details […]

  • Auditing Cash Flow Forecasting – Risk, Assertions, And Procedures

    Overview: We do not usually audit Cash Flow Forecasting during the normal course of an audit. It is only under certain circumstances that Cash Flow Forecasting will be included as part of the audit procedures, such as: There is insufficient information to support the going concern assumption of the entity: We will audit the Cash […]

  • Top 5 Auditing Tools and Software Used by Auditors (You Might Not Know Some of Them)

    The audit process constitutes several different dimensions that need to be factored in by auditors during the audit process. Both, internal, as well as external auditors, are supposed to plan the audit process carefully in order to ensure that they can optimize their results for a performance-oriented outcome. Factually, a lot of auditors rely on […]

  • Top 6 Alternative to Big 4 Auditing Firms That You Could Consider

    The big 4 accounting firms have their operations spanned across the world because they are considered to be highly critical in terms of providing much-needed critical support for companies. They are not only focused on providing accounting related services but also provide auditing-related services that can ensure that these companies are able to report their […]

  • Auditing Cash and Cash Equivalents – Risk, Assertions, And Procedures

    Overview: Cash and Cash Equivalent is scoped under IAS 7, Statements of Cash Flows. In Cash and Cash Equivalents, there are two separate components. The first is cash which comprises cash on hand and at the bank. The second is Cash Equivalents which are investments that are short-term, highly liquid, and are readily convertible to […]

  • Auditing Cash Receipts – Risk, Assertions, And Procedures

    Overview: Every entity that operates some form of business will most likely have cash transactions in its day-to-day operation. This includes collections from its customers and payments to its suppliers. Collection from its customers, otherwise known as Cash Receipts, is the process where an entity makes the collection, issues a receipt, records the transaction in […]

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