Audit Procedure for Rental Income Rental income is the financial return derived from allowing someone else to utilize your property, commonly a house or apartment. It stands out as a notable source of passive income, implying that once the property is leased, you no longer need to actively engage in work to earn this revenue. … Read more
Audit Electricity Expense Electricity expense constitutes a significant aspect of financial considerations for both households and businesses. It encompasses the total cost incurred in utilizing electricity, necessitating a comprehensive understanding due to its potential for substantial variation based on various factors. Breaking down the components of electricity expense reveals its multifaceted nature. Direct usage charges … Read more
Audit Procedure for Warranty Provision A warranty provision, within the realm of accounting, serves as a crucial component for companies navigating the landscape of product warranties. This provision is essentially an anticipated monetary allocation set aside to meet potential future costs associated with honoring product warranties. Positioned as a contingent liability, it underscores a forthcoming … Read more
Audit Procedure for Land and Building Land and buildings are tangible assets that hold a physical form, distinguishing them from intangible assets such as patents. These assets play a crucial role in the operations of businesses, providing a foundation for various activities. Notably, both land and buildings are considered long-term assets, contributing to a company’s … Read more
Audit Procedure for Deferred Revenue What is Deferred Revenue? Deferred revenue is a financial concept that plays a crucial role in a company’s accounting practices. It appears as a liability on the company’s balance sheet and is indicative of a prepayment made by customers for goods or services that are yet to be provided. Essentially, … Read more
Audit Procedure for Share Capital What is Share Capital? Share capital stands as a fundamental pillar within a company’s financial structure, encapsulating the funds acquired through the issuance of common or preferred stock. It plays a pivotal role in fortifying a company’s financial backbone, serving as a reservoir for necessary resources to fuel operations, investments, … Read more
Audit Procedure for Borrowing What is Borrowing? In the dynamic landscape of business, growth is a constant pursuit, and for many companies, the path to expansion often involves strategic borrowing. This delicate dance with corporate borrowing can be a game-changer when executed skillfully, propelling a company to new heights. However, mishandling this financial tool can … Read more
Audit Procedure for Customer Deposit Customer deposits is a crucial component of financial management, particularly when a customer pays cash to a company with no immediate exchange of goods or services. In this scenario, the company acknowledges the cash inflow but refrains from recognizing revenue until the promised goods or services are provided. Consequently, a … Read more
Audit Procedure for Accrued Liabilities The examination of accrued liabilities stands as a cornerstone of ensuring the accuracy of an entity’s financial statements. These liabilities, often representing expenses incurred but not yet paid and receive invoice from suppliers. As auditors navigate through the thicket of balance sheets and income statements, they must apply a meticulous … Read more
Audit Procedure for Petty Cash In the sphere of financial oversight, the auditing of petty cash holds a unique position, often overshadowed by larger fiscal concerns yet integral to maintaining the integrity of a company’s financial practices. This seemingly inconspicuous fund, typically utilized for small, routine expenses, can, if not properly managed and audited, become … Read more