![]() Internal auditors use accounting records to ensure the transaction was completed to fulfill procedural formalities. This accounting record can be used for multiple purposes including internal and external audits. Hence, all business transactions are backed by supportive evidence, and a complete set of financial records is created at the end of an accounting period. At the time of entering transactions in the accounting system, it must be backed by relevant and reliable supporting evidence.įor instance, if the bookkeeper records a liability for receipt of goods, the journal voucher to record liability must be backed by a supplier invoice and goods receipt note. The financial accounting process initiates when the bookkeeper enters transactions in the accounting record. ![]() ![]() Let’s discuss the objectives of financial accounting in detail. It’s focused on collecting transaction-wise details, recording, summarizing, and reporting this information in structured and usable form.įurther, the process is designed to help businesses keep a detailed record that helps meet legal and constructive obligations. ![]() Financial accounting aims to achieve operational management of accounting transactions related to business.
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