Month: February 2021

IAS 1 (Revised) was published in September 2007. It introduced a number of changes, the main ones being as follows: The titles of the main financial statements were amended to Statement of Changes in Position, Statement of Comprehensive Income and Read More …

STRUCTURE OF THE IASC FOUNDATION  In 1999, in a move that reflected the growing importance of international accounting standards, the board of the International Accounting Standards Board (IASB) recommended and later adopted a new constitution and structure.   As a Read More …

GROUP ACCOUNTING AND    THE    HOLDING COMPANY   AUDITORS The duty of the principal auditor is to report on the group accounts, which include balances and transactions of all the components of the group.   “Principal auditor” means the Read More …

SOCIAL AND ENVIRONMENT AUDITS In recent years there has been new legislation which has been implemented to deal with environmental issues.  This has placed additional burdens on companies to comply with the new legislation.  The danger of non-compliance brings the Read More …

PROSPECTIVE FINANCIAL INFORMATION Forecasts may be of interest to users more so than historical information.  Auditors may carry out a review or an assurance engagement on these forecasts. Prospective financial information is based on assumptions about events that may occur Read More …

FUNDAMENTAL PRINCIPLES AND GUIDANCE ISA 200 sets out the general principles of an audit.  The auditor should comply with the code of ethics for professional accountants issued by the International Federation of Accountants.   Accountants require ethics because people rely Read More …

INTERNAL AUDIT AND OUTSOURCING All businesses, where appropriate, should consider setting up an internal audit function.  Internal audit plays a key role in good corporate governance.  There are costs associated with setting up internal audit so having your own internal Read More …

AUDIT RELATED SERVICES   Reviews The objective of a review is to enable an auditor to state whether (on the basis of procedures which do not provide all the evidence that would be required in an audit), anything has come Read More …

INTRODUCTION  When you are auditing items appearing in the financial statements, you need to consider the following matters: Risk, Materiality, Relevant accounting standards, Audit evidence.   ASSETS   The key audit objectives are existence, completeness, valuation and rights and obligations. Read More …

REVIEW PROCEDURES  An auditor must perform and document an overall review of the financial statements before making an audit opinion.  This review, along with the conclusions drawn from other audit evidence obtained, gives the auditor a reasonable basis for his Read More …