Auditors generally use a financial statement cycle approach when performing a financial statement audit. Describe the...

Auditors generally use a financial statement cycle approach when performing a financial statement audit. Describe the transactions flow, using specific examples, from journals to financial statements that produce financial statements.

Expert Solution

The transactions flow are

Sales for transaction and collecting:- Auditors want to look at the Cash Receipts, Sales and Journal

Payment and acquisitions:- this is basically based on payment related journals and transactions

Payroll and Personnel:- This is basically based on Payroll related transactions and Journal

Repayment and Capital Acquisition:- This is depends on Notes Payable, Dividends, Capital Stock

Inventory Account:- This is basically on related to inventory accounting

Once the adjusting entries have been made or into a worksheet, the financial statements can be prepared using information from the ledger accounts. Accounting journal and your general ledger is used in the preparation of your business's financial statement. The income statement, the statement of retained earnings, the balance sheet, and the statement of cash flows all make up your financial statements. Once the adjusting entries have been made or into a worksheet, the financial statements can be prepared using information.

ekkarill92 answered 1 year ago

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