Stock audits are to verify the existence, completeness, and rights of an entity's goods. Most of the time, Stock Audits are associated with physical verification of stock. What's the testing approach for the Inventory Audit? The audit team performs substantive audit … [Read more...] about Physical Verification of Stock
Travelling Expenses – Meaning, Examples and Journal Entries
The name itself indicates that this travelling expense relates to expenses incurred for travel by entity employees or directors. The purpose of travel shall be connecting to the entity's business operations. Therefore, the purpose shall not be of personal … [Read more...] about Travelling Expenses – Meaning, Examples and Journal Entries
Staff Welfare Expenses
Staff Welfare Expenses (SW) are the expenses incurred for the benefit of employees of the entity. These expenses are not in nature of direct payments to employees working for the business. SW expenses can be in the form of non-monetary value like Gifts, Refreshments, … [Read more...] about Staff Welfare Expenses
Stationery Journal Entry
Purchased Stationery JE is an expense. Recording stationery expense is simple. How's the JE output? There is an alternative treatment. Credit GL can be a different one. Credit can be either to Estimated Time to Read: Accounting is to record all the … [Read more...] about Stationery Journal Entry
Audit Materiality (with Examples)
Audit Materiality means a quantitative value used to verify if an account balance or transaction is worth performing testing procedures in an audit context. There is no specific formula for arriving at the Materiality numbers, and it depends on who are the users of the financial … [Read more...] about Audit Materiality (with Examples)