Accounting Practice and Auditing
Accounting Practice Proprietary accounts Repairs, renewals, depreciation and fluctuation Partnership problems at organization Partnership problems during operation Partnership dissolution Partnership dissolution illustrated Consignments and joint ventures Fiduciary accounting Insolvency accounts Corporations Branch accounts Auditing The auditor and his work Scope of auditor's activity Procedure and methods Classes of audits Verification of the asset side of the balance sheet Verification of liabilities Reports and certificates
This section deals with the application of the principles of accounting to the complicated problems that arise in practice. The correct method of treating the proprietary accounts under the different legal types of organization are considered. The management of surplus, the treatment of reserves, the relation between funds and reserves and the method of handling sinking funds are discussed at length.
The differentiation between capital and revenue charges is perhaps the most difficult problem which the accountant has to face. The important principles involved in this problem are treated with numerous examples taken from actual cases. The difficult problems which arise in partnership and corporate accounting are fully explained.
Auditing is taken up from the business man's point of view rather than from the point of view of the practitioner. However, many points of interest to the practitioner and student are considered. The nature of the auditor's work is discussed and the different classes of engagements which auditors undertake are explained.
The auditor renders a report on his work at the conclusion of his engagement and the form and contents of his report are treated at length. The subscriber is shown the difference in certificates which auditors attach to balance sheets and the proper method of interpreting them is discussed.