Bookkeeping

To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based. Certain representations in management assertions auditing this letter are described as being limited to matters that are material. It’s critically important for all transactions in a given accounting period to be …

Management assertions in auditing Read More »

This stream of cash flows is an example of cash-basis accounting because it reflects when payments are received and made, not necessarily the time period that they affect. At the end of this section, you will address accrual accounting, which does reflect the time period that payments affect. Modified cash-basis accounting has more accounts because …

4 1 Cash versus Accrual Accounting Principles of Finance Read More »