top of page
  • Writer's pictureThomas Tsang

Understanding the business in audit

In an audit process, understand the company’s business is utmost important. It is because only when you know the business, you will know the expected items in the financial statement. Otherwise, you are exposed to risk of misstatements due to omission.

28 views0 comments

Recent Posts

See All

Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no im

When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe

In accordance with SFRS109, investment in equity instruments must be subsequently measured at fair value. In limited circumstances, cost represents the best estimate when recent information not avail

bottom of page