Introduction to Checking for creative accounting
While examining the financial statements of a business, a number of checks might be performed on the financial statements to assist gain a feel for their reliability. These can involve checks to see whether
Checks might also be performed to give confirmation of positive financial health.
These may involve checks to see whether
Even though the several checks explained are helpful, they cannot be employed to guarantee the reliability of the financial statements. A few creative accounting practices might be very deeply seated and might go undetected for years.
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Later than the connections and rewinding are completed; it is significant that both the winding and the connections are checked for shorts, grounds, open circuits and accuracy of connections.
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The principle that underlying the group statement of financial position is that it should present the situation like if all the assets and claims of individual group members were directly the assets and claims of the parent company.
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