A major change in the accounting system has taken place during the year. The effect on control testing is that: a. the auditor should ensure control testing is performed for….
Outline the arguments for and against defining funds as total resources.
1.Outline the arguments for and against defining funds as total resources.2.‘Defining funds as cash is unsatisfactory because the effects of many transactions are ignored.’ Discuss. 3. 4.Your friend has commented as follows: ‘Cash flow data are different from accounting profit data, and so I agree with the AASB requirement that companies prepare a statement of cash flows.’ Evaluate this comment.4.‘The statement of cash flows classifies cash flows into operating, investing and financing, but these classifications are necessarily arbitrary in that not all cash flows are easily recognisable as operating, investing or financing cash flows.’ Discuss. (LO4)