assurance team

Assurance team – meaning

Assurance team are all professionals participating in the assurance engagement and all others within a firm who can directly influence the outcome of the assurance engagement, including:

  • Those who recommend the compensation of, or who provide direct supervisory, management or other oversight of the assurance engagement partner in connection with the performance of the assurance engagement.
  • Those who provide consultation
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What is the difference between audit and compliance?

Audit is an independent examination of business financial statements so as to issue opinion on whether the financial statement are prepared in accordance with acceptable financial reporting framework and show true performance and position of the business. Audit is conducted according to the requirements of countries laws and regulations and international standard on auditing. The auditor when conducting audit aim … Read the rest

feautures of job costing

Financial Leverage Ratio – meaning and formula.

Financial leverage results from the presence of fixed financial charges in the firm’s income stream. These fixed charges do not vary with the earnings before interest and tax (EBIT) or operating profits. They have to be paid regardless of the amount of earnings before interest and taxes available to pay them. After paying them, the operating profits (EBIT) belong to … Read the rest

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Four causes of misstatements in the financial statements,#3 will surprise you.

Misstatements are difference between what accounting standards and framework want financial statements to be and what financial statements actually are. ISA 450  define misstatement as difference between the amounts, classification, presentation, or disclosure of  reported financial statement item and the amount, classification, presentation, or disclosure that is required for for the item to be in
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Ten (10) basic elements of audit report

Audit report is the end product of audit process in which auditor express his opinion on truth and fairness of financial statements. the audit report have uniform content and structure to enable understandability and comparability between audit report of one entity and another or between report of different period of the same entity.

The following

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What is meant by appropriateness of audit evidence?

Appropriateness of audit evidence  is the measure of the quality  of the audit evidence that is its relevance and its reliability in providing support for the conclusion on which the auditor’s opinion is based. It is one of key characteristic of good audit evidence. The other characteristic of audit evidence is sufficiency of audit evidence. Relevance of audit evidence is … Read the rest