This topic assumes an understanding of Tianlong Audit Methodology (TAM) and does not summarize or repeat our methodology. Instead, we read this topic in conjunction with TAM. The principal objectives in auditing the company’s consolidation conclusions are to determine whether: The transaction is properly approved (Completeness and Rights and obligations assertions) A scope exception applies …
The principal objectives in auditing business combinations are to determine whether: The transaction is properly approved (Rights and obligations assertion) The transaction is a business combination (Existence, Completeness, Valuation/Measurement and Presentation and disclosure assertions) The acquirer is properly identified (Existence/Occurrence, Completeness, Valuation/Measurement, Rights and obligations and Presentation and disclosure assertions) The acquisition date is correct …
Objectives of an audit In conducting an audit of financial statements, our overall objectives are: To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling us to express an opinion on whether the financial statements are prepared (and presented fairly …
A statutory audit refers to a type of external audit usually conducted annually to meet a specific set of regulations set by the legislation. As the name suggests, statutory audit is compulsory for every company in Singapore unless it is exempted after fulfilling certain criteria. In Singapore, Accounting and Corporate Regulatory Authority (ACRA) is the …
There are many ways to create fraudulent sales that make the company look more economically active, to meet expectations of investors or simply to meet management targets. You will learn the different types of sales fraud in this article. The seven ways are as follows: Creating fake invoices Acceleration of revenue recognition Bill and hold …
Since your company has to keep detailed records of past and present financial transactions for future reference, it is the duty of various accountants verified for statutory audit and internal audit to prepare such financial statements. Generally, a Statutory Auditor performs the statutory audit while Internal Auditor is responsible for doing the internal audit. Therefore, …
Statutory Audit and Internal Audit: What’s the Difference? Read More »
The accounting nature of inventory Inventory is an asset that is intended to be sold in the ordinary course of business. Inventory items call fall into one of the following categories: Held for sale in the ordinary course of business That is in the process of being produced for sale The materials or supplies intended …
Breakthrough hardware. Innovative software. Improvement of everyday life through technology. Similarly for auditing, incorporating technology is inevitable. If we embrace new technology, we believe that auditors of the future will play an increasingly important role in society. Such as bringing forward looking insight, trust and human judgement. Working hand-in-hand with but not replaced by technology. …
To audit revenue, let’s first get an understanding of the types of revenue and the transactions directly associated with it. Understanding revenue Revenue is usually the largest single line item on the income statement, so the auditor needs to acquire a deep understanding of how the client generate sales. This can involve understanding the following: …
Cash is an inherently risky asset. It can be easily misappropriated because: Individual transactions vary greatly in size Cash is the most negotiable financial instrument It can be used for unauthorized purposes Cash transactions may be posted to the wrong customer’s account or not recorded on a timely basis To minimize the risks stated above …
Anti-money laundering law is now an important issue for auditors to be aware of. Auditors must abide by the requirements of Ethics Pronouncement 200 (EP 200) Anti-Money Laundering and Countering the Financing of Terrorism – Requirements and Guidelines for Professional Accountants in Singapore. In this article, we will briefly list down the obligations and duties …
Duties of an auditor in relation to money laundering Read More »