Audit documentation deals with the questions Audit documentation means the context of how the auditor and their team rationalize the testing performed. Work not documented means work not performed. So, such documentation shall be robust, and there should not be any scope … [Read more...] about What does Audit Documentation Deals with?
Journal Entry Testing
Journal Entry testing is a financial check point. What's the purpose of this test? In other words, its a kind of testing the GL dump with all entries for a specific period. How about an example to understand the purpose? Consider an entity that is majorly financed … [Read more...] about Journal Entry Testing
Withdrew Cash Journal entry
Cash withdrawal is a contra entry. Here, this JE involves Cash & Bank GL. Cash can be withdrawn for Personal drawings is not for business. How about an example? Owner pays his rent with office cash. It doesn't facilitate business in any way. Lets see … [Read more...] about Withdrew Cash Journal entry
Old Newspaper Sold Journal Entry
Sale of Old Newspaper yields income. Its a non operating activity. So, it falls under other income. Why's is it part of other income? That's because those cash inflows do not primarily contribute to sustaining the business. In General, business entities subscribe … [Read more...] about Old Newspaper Sold Journal Entry
Goods Given as Charity Journal Entry
Goods given as charity Journal entry is recorded by reducing the value of the goods and increasing the charity expenses. Entities exist with a primary objective of earning profits. However, entities might give donations or charity, either cash or kind. Donations in the form of … [Read more...] about Goods Given as Charity Journal Entry