liability

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Reason why ‘completeness’ is a major objective in the audit of liabilities.

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.

The assertion of completeness is critical for liabilities such as trade creditors and accrual salaries and wages because such liabilities are usually an audit area of significant … Read the rest

Meaning of account in accounting and book keeping.

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