Auditor - A Bridge
The accounting framework reflects a specific perspective on various subjects. In most cases, the principle of prudence takes precedence over overly optimistic practices. When it comes to recognizing revenue, accounting standards typically impose strict conditions that must be met before revenue can be recorded as earned. This can sometimes feel excessively rigid to clients in discussions with auditors. However, it’s important to understand that this strictness is intended to protect the best interests of the auditee, creditors, investors, government, and society at large.
The auditor plays a crucial role in nation-building by encouraging clients to comply with legal requirements and ensuring that taxes are paid on time, without causing unnecessary strain on the entity. Ultimately, the auditor serves as a bridge between the industry and the government, promoting transparency and accountability.
By CA L.Muralidharan and CPA L.Mukundan
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