Ledger scrutiny is an internal check and part of audit process. The focus is to find any How to Perform Ledger Scrutiny? The Process starts by scrutinizing each GL Account by considering the guidelines below. Check if the Current Year's Opening balance agrees … [Read more...] about What is Ledger Scrutiny ?
Management Override of Controls
Management Override of Controls is bypassing the rules/steps established by the company for achieving its business objectives. This override of controls can be harmful to the business. In other words, it's a part of fraudulent activities. Lets understand the concept of … [Read more...] about Management Override of Controls
How to Journalize Transactions
Journalize here means recording the financial transactions as they occur The record in which accounting transactions are documented is called Journal. There are different types of Journal books. Purchase Journal, Sales Journal, Returns Inward Journal, Returns Outward Journal, … [Read more...] about How to Journalize Transactions
We often hear the term outstanding expenses in an accounting context. Those are unpaid expenditures. In other words, those are incurred but remain unpaid. Those amounts don't necessarily fall into the group of Bad or Doubtful. There can be a valid reason, such … [Read more...] about Outstanding Expenses
Understanding Contingent Liabilities with Example
If you're an accountant, you've probably heard of Contingent Liabilities. But what exactly are they? Those amounts can turn out to be a Liability depending on the occurrence of an event. For example, Consider a Law Suit. It is an event which is not in the hands of … [Read more...] about Understanding Contingent Liabilities with Example