AUDIT OF INCOME AND EXPENSE

Scrutinize the entries in the general ledger and general journal for any other income or other receivables recorded thereto. Test check entries in...

Identify in the tax returns and financial statements any sale, exchange or disposal of assets other than inventories or stocks in trade. Obtain co...

Determine the taxpayer’s accounting method of recognizing income, whether cash or accrual. Examine contracts with clients and other correspondence...

Obtain and review copies of lease contracts. Conduct ocular inspection of the premises under lease. Identify tenants and monthly or annual rentals...

Review the taxpayer’s accounting method of revenue recognition if the same is acceptable and consistent with prior years. Ascertain that all sales...

This Chapter discusses the books of accounts, accounting records and documents used to record income and expense transactions. It enumerates the au...