Ratio Analysis describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm. Ratios provide clues to the financial position of a concern. It enables to assess the profitability, solvency and efficiency of an enterprise. Types of Ratios: There is a two way classification of ratios: …
Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. According to Bierman and Drebin:” Accounting may be defined as identifying, measuring, recording and communicating of financial information.” Accounting can also be defined as the process of identifying, measuring, recording and communicating the required information relating to the economic events of an …
The system of accounting and auditing of slate revenue and expenditure is believed to have existed in India under Maurya and Hindu Kings. Kautilya in his Arthashastra had given details regarding accounting and auditing of state finances. According to him, “all undertakings depend on finance. Hence, foremost attention shall be paid to the treasury.” He …
Auditing: Meaning, Objectives, Errors and Frauds Read More »
Internal Control system is one of the basic and essential factors for efficient and effective management. It covers both financial or non-financial aspects of management in an organisation. Definition of Internal Control in accounting & auditing: Internal Controls are methods put in place by an organisation to ensure the integrity of financial and accounting information, …
Social audit as a term was used as far back as the 1950s. However, in the last decade, the term has acquired new relevance in India. It is generally believed today that it is the duty of the privately owned enterprise to ensure that it does not adversely affect the life of the community in which …
