Shareholders authorize auditors to examine a company’s financial statements under an audit engagement. In most cases, auditors seek to ensure the subject matter is free from material misstatements. On top of that, they also assess whether it adheres to standards or other regulatory frameworks. This process is crucial to ensure …

Debt buyers are companies that purchase delinquent debt from creditors for a fraction of the amount owed. They then attempt to collect on that debt by any means necessary, including legal action. They have become a big business in recent years, as the amount of consumer debt has increased. Debt …

Conducting external audits is often mandatory for companies under the law or standards. However, companies may also perform these audits for other parts of their business or specific purposes. These entail obtaining the services of an auditor. Companies must understand the type of auditor they need to conduct audits. Before …

Debt distress refers to a country or a government entity’s inability to repay its debt obligations. This may be due to many factors, including economic recession, political instability, or poor fiscal management. A country in debt distress is typically unable to borrow new funds and may be forced to default …

An audit involves the examination of a subject matter based on suitable criteria. In most cases, the subject matter is the financial statements prepared by a client. On the other hand, the suitable criteria may come from auditing standards or regulatory frameworks. Usually, each of these elements comes from auditing …

World debt is a big problem because it means that countries are borrowing money from other countries. This can lead to problems if the country that borrows the money cannot pay it back. It’s not good for the world economy because it can create a lot of instability, inflation as …

Auditing involves examining a subject matter to ensure it meets some predefined criteria. Usually, it requires independent auditors who assess a client’s financial statements against accounting and other regulatory frameworks. Based on their work, auditors provide an audit report that includes their conclusion and opinion of the subject matter. While …

The United States government has a long and proud history of issuing debt to finance its operations. Treasury debt outstanding is now at an all-time high and shows no signs of slowing down. Debts are not an uncommon thing in most countries. Governments often incur debt to invest in infrastructure …

One of the critical areas during audits is stock and inventory. For most clients, these constitute a significant portion of current assets. On top of that, they may include items with complex accounting adjustments. Some clients also hold inventory that requires specialized valuation. These issues complicate the auditing of inventory …

To understand how much profit a company can generate, it’s important to measure the cash flow as well as the net profit. Having a good understanding of both of these metrics can give you a clear idea of how much cash flow is being generated and how efficiently the company …