Dear All,
I am doing a Statutory Audit of a small firm which maintains its books of accounts on cash basis. Pleas tell me the aspects to be taken care of in a cash basis of accounting?
Thanx in Advance.
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Cash basis of accounting
Replies (2)
Auditing in a cash basis environment is comparatively easy than in mercantile. You need to vouch for actual cashflows i.e. all expenses & incomes actually incurred for cash or by cheques during the financial year under audit. The journals would be only for depreciation & amortisations. No provisions are required to be made in the balance sheet.
he is spot on..
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