[vodrldnr]

what is definition for those ?

I cannot find any about this on my text book

It ain't About How Hard You Hit

[Substantive Testing]

I am not sure about accounting loss. Maybe a loss recognized on the balance sheet?
As for Off balance sheet risk, they are the risks in which you, as an company accountant or executive, would know, but a investor reading the balance sheet would not know *Cough cough* Enron. For example, if ABC construction is required by the bank to maintain an specific Current Assets/ Total Liability ratio in order to keep receiving further financing, then the ABC can create another entity (Joint venture for example) in which they purchase long term asset with liabilities, and keep it off their balance sheet, so that they can maintain the ratio the bank requires them to. This is also called a pass-through entity. I do not know why this is still legal, but I am sure you do not need to go more in-depth for the exam.

AUD - 75
BEC - 75
FAR - 81
REG - 78

 

CPA ex-auditor

 

[vodrldnr]

Substantial Assurance> wow so clear explain. OMG thank you SO MUCH!

It ain't About How Hard You Hit

[Author]

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