What is the difference between a Fair presentation framework and a Compliance framework?
Financial statements are prepared to fulfill information needs of its users. In order to cater the needs at best a certain financial reporting framework...
What is meant by deviation from controls?
Simply put; an instance or activity that did not occur as per expectations is considered as deviation. For an activity it is not necessary...
Differentiate between Goods Received Note (GRN) and Goods Despatch Note (GDN)?
In order to control the activities of the business and have operations running effectively management is responsible to have controls in place. Without controls...
What is meant by Cost object?
Cost object is anything in relation to which user of cost information wants to measure cost. It can be a product or collection of...
Why auditors may fail to detect fraud?
Primary responsibility to prevent and detect fraud is upon management or those who are charged with an authority of management oversight (also known as...
Auditor: “A watchdog not a bloodhound” Why yes? Why not?
This is still a question but why?
In this article we asked other connecting questions so that if this cannot be answered directly then we...
What are limitations of External audit?
Limitations mean restrictions or factors that limit the effectiveness of audit engagement and limits the auditor to restrict only to provide reasonable assurance.
Most of...
Can auditor provide absolute assurance if ideal situation is given?
We must be clear that auditor is neither expected nor required by the International Standards on Auditing to provide absolute assurance i.e. auditor is...
What is Business risk?
Doing day to day business involves carrying out numerous activities of different nature. It involves all kinds and sorts of business transactions. Some of...
What are the five components of internal control system?
Internal control system is implemented by the management or those charged with governance to assure that entity's objectives regarding reporting, compliance with applicable laws...