Foresight Accounting Solutions BD

What is assurance ? It is when a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. The key elements of an assurance engagement are as follows : Three people or groups of people involved :  - The practitioner  - The intended user  - The responsible party A subject matter As we shall see below, the subject matter of an assurance engagement may vary considerably. However , it is likely to fall into one of three categories : - Data - Systems or processes - Behaviour Suitable criteria  The person providing the assurance must have something by which to judge whether the information is reliable and can be trusted. So, for example , in an assurance engagement relating to financial statements , the criteria might be accounting standards. The practitioner will be able to test whether the financial stateme...

Importance of confidentiality in Accounting work Confidentiality is a fundamental principle of  the IESBA codes of ethics. In addition to this ,accountants and auditors are bound by the data protection act . Accountants are required to keep client information confidential. This is an important aspect of the trust between client and accountant, as to do their job, accountants require access to information about their business that client would not want made public externally to the business, and in some cases, such as where it relates to pay or future intentions of the doeectors, internationally to the business either. In practice this means that an accountant should not discuss client matters with anyone outside the firm of accountants, and in cases where there is a conflict of interest with another audit client, with anyone outside of the team assigned to that client. It is appropriate to discuss client matters , where necessary , with other members of staff from the firm for exam...

Certain accounting ratioss may be used as analytical procedures . Here are the key ratios used. 1. Performance ratios Return on capital employed * Profit before interest and tax/equity + net debt 2. Return on shareholders' funds *Net profit for the period/Share capital +reserves 3. Gross profit margin * Grossoss profit * 100 /Revenue 4. Cost of sales percentage * Cost off sales * 100 /Revenue 5. Operating cost percentage *Operating costs*100/Revenue 6. Net margin = operating margin *Profit before interest and tax*100/Revenue 7. Short-term liquidity ratios Current ratios *Current assets : current liabilities 8. Quick ratios *Receivables + Current investments +Cash: current liabilities 9. Long term solvency ratios Gearing ratios * Net Net debt/equity * 100 10. Interest cover *Profit before interest payable / Interest payable 11. Efficiency ratios Net assets turnover *Revenue / Capital employed 12. Inventory turnover *Cost of sales/Inventories 13. Inventory days * Average inventory / ...

 What is auditing? A thorough review of a company's financial statements to ensure the financial records are fair and accurate. The main goal of auditing is to make sure that a company's financial statements are accurate and are following regulatory guidelines. There are three main types of audits. They are given blew: 1. Process Audit 2. Product Audit 3. System Audit Process Audit  This type of audit verifies that processes are working within established limits. It even evaluates an operation or method against predetermined instructions or standards to measure conformance to these standards and the effectiveness of the instructions. A process audit may  1. Check conformance to defined requirements such as time, accuracy, temperature, pressure, composition, responsiveness, amperage, and component mixture. 2. Examine the resources followed and the measures collected to determine process performance. 3. Check the adequacy and effectiveness of the process controls establishe...

Microsoft Excel is very useful for all of us in our regular work at the office and business activities. Without Excel or Google Sheets, we cannot calculate our financial/mathematical operations. Today I'm going to talk about a little bit of tips and tricks for an accountant that he/she needs daily for performing tasks. For an accountant, Excel is important. That's why here are some tips for them, and this trick is daily used by me for my work as an accountant. 1. How to input the current date on an Excel sheet in a shortcut way? If you want to enter current date in excel then you need to press ctrl + ; this is one method; another is =Today() 2. How to remove grid lines from the background? If you want to remove grid lines from the background, then use this shortcut key for performing the operations: Alt+W+VG. 3. If you want to make bold text, then use ctrl+B 4. If you want to make text italic, then use ctrl + I 6. Automatically adjust column width (Alt+H+O+I  7.  To autom...

What are financial statements? Financial statements are written records that share information about business activities and financial information of a company. Financial statements are created every year or at the end of the fiscal year of a company. These financial statements are made for reviewing the company's financial activities. Financial statements are audited by government agencies, accounting firms, investors, internal users, and others. There are five main types of financial statements. They are:  1. Statements of financial position 2. Statements of profit or loss or comprehensive income 3. Statements of cash flows 4. Statements of changes in Equity 5. Notes to the financial positions.  Here we'll discuss all of the financial statements step by step.  1. What are statements of profit or loss or comprehensive income? Statements of profit or loss or comprehensive income are prepared to find out one company's profit or loss after deducting all types of expenses du...