Banking awareness important financial terms  Cash flow Cash flow is the movement of money into and out of a business, p…

Important Financial Terminology Audit In terms of tax, an audit refers to the review of a taxpayer's tax return fo…

Important Financial Terminology Accounting Period An accounting period is the time interval reflected by the data in …

Vouching The act of examining documentary evidence in order to ascertain the accuracy and authenticity of entries in …

Revenue Expenditure : (i) Wages:  In case of concerns employing a considerable number of workers, vouching of wages f…

Capital expenditure : According to Spicer and Pegler “Capital expenditure is all expenditure incurred for the purpose o…

Vouchers A voucher is a written paper or document in support of an entry in the books of account. They maybe of two typ…

Distinction Between Internal Check and Internal Audit 1. Internal check is an arrangement of as duties allocated in su…

Internal Check In internal check is a method of organising the accounts system of a business concern or a factory whe…

Internal Audit  Internal audit is the review of operations and records undertaken within a business by specially assign…

Classification of Audit Audit may be classified into two categories mainly ; -  (a) according to organizational struc…

Limitations of Auditing Truly speaking an audit should have no limitation of its own. It is designed to protect the in…

Advantages of Auditing It is of great importance to get accounts audited in a proprietary concern to see that business…

Types of Errors A. Clerical Errors : Clerical errors are those which result on account of wrong posting that is postin…

Objects of an Audit The main object of audit is to verify the accounts and to report whether the Balance Sheet and the…