Performing the cut off procedures in audit is a testing approach to identify if the recording of financial information occurs within correct period. Cut off is an audit assertion. Auditor test this assertion to obtain sufficient audit evidence that an account balance is … [Read more...] about How to perform the cut off procedures in audit?
Audit
What does SALY (Same as Last year) mean in public accounting terms?
SALY stands for Same as Last Year, an abbreviation used in public accounting. Auditors commonly use it in their work papers. SALY is used when the audit team plans to perform the same procedures as the prior year and the approach has not changed. The auditor's job often … [Read more...] about What does SALY (Same as Last year) mean in public accounting terms?
What is Statutory Audit
Statutory audit focus is to verify the financial transactions in books of accounts. The respective laws and regulations govern performing these audits. For instance, the SEC calls for a Mandatory audit requirement for all public companies. An Independent Certified Public … [Read more...] about What is Statutory Audit
Financial Statement Tie out
Financial Statement Tie out is an audit process. It's a completeness check to confirm if all the numbers in the financials are either tested in the current year or the prior year. The auditor provides assurance for stakeholders with respect to balances within the … [Read more...] about Financial Statement Tie out
Trial Balance vs Balance Sheet
Trial balance vs Balance sheet is not a competition analysis. These are different statements in financial reporting. It's important to understand that a trial balance is an accounting tool used to verify the correctness of accounting entries. In contrast, a balance sheet … [Read more...] about Trial Balance vs Balance Sheet