BALANCE SHEET APPROACH TO EXAMINATION
LOANS FROM SHAREHOLDERS/OFFICERS/OWNERS
Determine whether there is a true debtor-creditor relationship. Excessively large liabilities in relation to capital stock (especially in the case of a new company) may indicate a thin capitalization situation....
LOANS FROM SHAREHOLDERS/OFFICERS/OWNERS
Determine whether there is a true debtor-creditor relationship. Excessively large liabilities in relation to capital stock (especially in the case of a new company) may indicate a thin capitalization situation....
DEFERRED CREDITS
Check all payments received as recorded in the cash receipts book, (i.e. date of receipt, source of collection, and other entries). Check if collections were included in the gross income...
DEFERRED CREDITS
Check all payments received as recorded in the cash receipts book, (i.e. date of receipt, source of collection, and other entries). Check if collections were included in the gross income...
FIXED LIABILITIES
Acquaint with the pertinent provisions of loan contracts, mortgage agreements, certificates of indebtedness, financing arrangements and consider possible adjustment areas as follows: determination of expenses, (e.g. interest and bank charges);...
FIXED LIABILITIES
Acquaint with the pertinent provisions of loan contracts, mortgage agreements, certificates of indebtedness, financing arrangements and consider possible adjustment areas as follows: determination of expenses, (e.g. interest and bank charges);...
CURRENT AND ACCRUED LIABILITIES INCLUDING NOTES...
These liabilities are found on business records under various titles such as accounts payable, vouchers payable, notes payable, accrued expenses and other current liabilities. The audit procedures are as follows:...
CURRENT AND ACCRUED LIABILITIES INCLUDING NOTES...
These liabilities are found on business records under various titles such as accounts payable, vouchers payable, notes payable, accrued expenses and other current liabilities. The audit procedures are as follows:...
EXCHANGE, CLEARING, OR SUSPENSE ACCOUNT
Obtain a schedule to determine the nature and purpose of the account if significant in amount, Test check debit and credit entries, being aware of the possibility that such account...
EXCHANGE, CLEARING, OR SUSPENSE ACCOUNT
Obtain a schedule to determine the nature and purpose of the account if significant in amount, Test check debit and credit entries, being aware of the possibility that such account...
OTHER ASSETS
Obtain a schedule of other assets account when material in amount. Investigate sources of charges to the account. Verify entries and supporting documents to check if the other assets are...
OTHER ASSETS
Obtain a schedule of other assets account when material in amount. Investigate sources of charges to the account. Verify entries and supporting documents to check if the other assets are...