It is always emphasized that one of the major audit objectives in the audit of liabilities is that of ‘completeness’ and that auditors should ensure that their audit works adequately cover this objective.
Accrual basis means a basis of accounting under which transactions and other events are recognized when they occur (and not only when cash or its equivalent is received or paid). Therefore, the transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate. The elements recognized under the accrual … Read the rest
The account – transactions that take place in a business enterprise during a specific period may effect increases and decreases in assets, liabilities, capital, revenue and expense items. To make up to-date information available when needed and to be able to prepare timely periodic financial statements, it is necessary to maintain a separate record for each item. For e.g. It … Read the rest