尺度大约 在文章的框架我们可以按照以下来编写：
I. Introduction
A. Definition of Current Liabilities
B. Overview of Current Liabilities
II. Understanding Going-Concern Concept
A. What is Going-Concern
B. Importance of Going-Concern
III. Auditing of Current Liabilities
A. Nature of Audit
B. Methods of Audit
C. Considerations for Current Liabilities Audit
IV. Conclusion
A. Summary
B. Future Outlook
INTRODUCTION
Current liabilities are obligations that businesses owe to creditors and are expected to pay off within one year. Current liabilities can arise from debit for purchases and services, wages and payroll taxes due, rent, taxes and outstanding bills. Generally accepted accounting principles (GAAP) require current liabilities to be reported on the balance sheet. Due to their short-term nature, current liabilities are an important indicator of a company’s financial health.
Current liabilities are important both theoretically and practically. They are important theoretically because they indicate leverage and the potential need for refinancing. Current liabilities are important practically since running short on cash or maintaining too much debt can get a company in trouble.
UNDERSTANDING GOING-CONCERN CONCEPT
What is Going-Concern?
Going-concern is an accounting concept which assumes that an entity will remain in business for the foreseeable future. The concept of going-concern is used in financial statements and is an important factor in determining the values of assets and liabilities on the balance sheet. This is because it assumes that the entity will continue to make payments on its debts, as well as that receivers of payments will continue to receive payments.
Importance of Going-Concern
The concept of going-concern is important to financial reporting since it allows preparers to record liabilities and assets at the proper values on the balance sheet. The going-concern concept assumes that there will be a period of time in which the entity can make payments and recover both liabilities and assets at their true values. The concept also assumes that there is not a need to write down assets or increase liabilities.
AUDITING OF CURRENT LIABILITIES
Nature of Audit
Auditing current liabilities involves analysis of an entity’s books and records to determine if balances for current liabilities are correct and if an entity’s management is properly documenting the transactions. Both total and individual line items must be audited to ensure accuracy. This can include Internal Revenue Service payroll records, accounts payable accounts, lenders’ statements and other documents.
Methods of Audit
Auditors use several methods to ensure that the liabilities reported on the balance sheet are accurate. These include analytical review, inspection, confirmation and other tests. Analytical review is the process of analyzing the information presented in the balance sheet, determining whether there are inconsistencies, and validating the accuracy of the reported amounts. Inspection involves both physical inspection and exact counting of documents. Confirmation is a process of contacting the entities responsible for liability, such as banks, creditors and insurers to determine their knowledge of the loan or other liability.
Considerations for Current Liabilities Audit
In addition to the nature and methods of an audit, it is important to consider other factors such as internal controls, the use of an accrual system, segmentation of liabilities and trends. Internal controls are protocols and procedures designed to ensure that the operations and assets of an entity are secure and that the balance sheet accurately and correctly reflects the assets and liabilities of the business. The use of an accrual system can help ensure that all current liabilities are recorded in a timely manner. Segmentation of current liabilities allows an auditor to more easily determine if any liabilities have been omitted. Trends analysis involves examining the changes in current liabilities over various periods of time, which can alert the auditor to possible problems.
CONCLUSION
In conclusion, current liabilities are an important component of a company’s balance sheet and can be an indicator of the company’s financial health. Auditing current liabilities involves evaluating the accuracy of reported liabilities, examining internal controls and other factors, and ensuring that the going-concern concept is properly applied. With the appropriate consideration of these factors, auditors can ensure that current liabilities are reported accurately.
The importance of current liabilities and the importance of a timely and accurate audit of current liabilities cannot be overstated. Businesses must be cognizant of and properly document their liabilities in order to ensure their continued financial health and success. Auditors must exercise their due diligence when evaluating the accuracy of current liabilities on a company’s balance sheet and should always base their opinions on the information presented.
