auditing and assurance

When is auditor supposed to examine the entire population instead of just taking a sample?

Due professional care – meaning

Professional due care means performing the job or assignment by using all your knowledge and following all standards or procedures required to do the job or assignment at the best level.
In auditing professional due care means performing the audit engagement by following all required audit standards and law and regulation. So the auditor is not only required to possess … Read the rest

What is International Federation of Accountants (IFAC)?

IFAC is the global organization for the accountancy profession. It is dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC has 167 members and associates in 127 countries around the world, representing approximately 2.5 million accountants in public practice, education, government services, industry and commerce.
INTERNATIONAL FEDERATION OF ACCOUNTANTS
IFAC provide the structure
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What is meant by materiality in accounting?



Materiality is the amount of transaction or balance and the type of information in the financial information which can affect the decision of the user of financial statements if that amount is omitted or misstated.

 

definition of materiality in accounting

In other words the information in the financial statement is material if committing it or misstating it could influence decision

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What is general purpose financial statements?



A general purpose financial statement is the statements that is intended to meet the needs of users who are not in position to demand information that are tailored to their needs. such information is useful to existing and potential investors.



In other words general financial statement are annual financial statement … Read the rest

What is misstatement in auditing?



Misstatements are difference between what accounting standards and framework want financial statements to be and what financial statements actually are.Therefore misstatement is mistakes which management make when preparing financial statement that may mislead the user of financial statement.    



 ISA 450  define misstatement as difference between the amounts, classification, … Read the rest