January 2025

Effective internal controls over receivables are critical for ensuring the accuracy of financial reporting, safeguarding assets, and maintaining healthy cash flows. Receivables, which represent amounts due from customers for goods or services sold on credit, are vulnerable to errors, misstatements, and fraud. Proper internal control systems help mitigate these risks by establishing procedures for credit approval, billing, collections, and account reconciliation.…

The audit of receivables is a critical component of the financial audit process, focusing on verifying the existence, accuracy, and valuation of amounts owed to an organization. Receivables, typically representing credit sales, are significant assets on the balance sheet and directly impact liquidity, profitability, and financial health.…

Receivables represent amounts owed to a business by customers or other parties, typically arising from sales made on credit. As a significant component of current assets, receivables play a critical role in an organization’s liquidity and financial health. Proper management, valuation, and auditing of receivables ensure accurate financial reporting and compliance with accounting standards such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…

The comparison of cost versus net realisable value (NRV) is a critical principle in inventory valuation, ensuring that assets are not overstated in financial statements. Accounting standards, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), require that inventory be valued at the lower of cost or NRV.…

Auditing the valuation of work-in-progress (WIP) and finished goods is a crucial component of the financial audit process. Accurate valuation ensures that inventory is recorded at appropriate amounts, directly impacting cost of goods sold (COGS), gross profit, and net income. Auditors must verify that WIP and finished goods are valued correctly according to applicable accounting standards, such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…

The valuation of work-in-progress (WIP) and finished goods is a critical component of inventory accounting and auditing. Accurate valuation affects the cost of goods sold (COGS), gross profit, and overall financial performance, making it essential for compliance with accounting standards such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…

The valuation of raw materials and brought-in components is a fundamental aspect of inventory accounting and auditing, directly influencing the cost of goods manufactured and overall financial reporting. Proper valuation ensures that these materials are recorded at appropriate amounts, reflecting their true economic value while complying with accounting standards such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…

The assessment of cost and net realisable value (NRV) is a fundamental aspect of inventory valuation in financial reporting and auditing. Inventory must be valued at the lower of cost or NRV, as required by accounting standards such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…

Valuation is a critical component of auditing, focusing on the assessment of whether assets, liabilities, and equity interests are recorded at appropriate amounts in accordance with applicable financial reporting frameworks. Accurate valuation impacts financial statements significantly, influencing stakeholders’ decisions and ensuring compliance with accounting standards such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).…