What Are Some of the Safeguards That CPAs Firm Utilize

question 9

Short Answer

What are some of the safeguards that CPAs firm utilize to minimize threats to their auditor independence?

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.

Accounts Receivable

Represents the money that a company is entitled to receive because it has provided customers with goods and/or services.

Cash Realizable Value

The amount of money that can be obtained from an asset during its disposal or liquidation, after deducting any associated costs.

Note Receivable

This is a written promissory note where one party promises to pay another party a definite sum of money either on demand or at a specified future date.