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
Fixed asset reconciliation
Fixed Asset Reconciliation comprises of below two activities Are you wondering why these are called Fixed Assets? The word "Fixed" doesn't necessarily imply immovable. Instead, these assets will exist in the business for a longer time. Benefits keep flowing … [Read more...] about Fixed asset reconciliation
Loose tools in final accounts
Loose tools are simple instruments, devices, or equipment that aid in improving the function of fixed assets. These tools don’t bring a significant operational change but are merit-worthy in catering to the business needs. For example, a screwdriver helps fix the screws of … [Read more...] about Loose tools in final accounts
Misappropriation of Assets
Misappropriation of assets is exploiting the business resources at the entity's cost. For example, the company director uses business vehicles for personal work. Considering his position, none of the business workers or employees questioned this. It's nothing … [Read more...] about Misappropriation of Assets