Accounts prep

bellaca
bellaca Registered Posts: 1
Hi there!
This is regarding AAT Level 2. I am studying through ICS learn and had to submit a progress check. I was wondering if someone could tell me what is exactly accounts preparation. And also, what auditors do?
I can't find any proper/good answers to these 2 questions online. Could someone please help me?
Many thanks,
Bella

Comments

  • Clintm15
    Clintm15 Well-Known FarehamRegistered Posts: 247
    The AAT has changed since I took it so I'm not best placed to talk about the current syllabus.

    I can answer the auditor question. An auditors job essentially is to make sure that the figures on a company's financial statements are a fair representation of the truth. This is important because all sorts of people rely on those financial statements. For example, an investor looking for an investment opportunity, the government looking to shape policy on certain industries, an employee wondering if he or she will have a job next year.

    So as a simple example. If a company reports that it has inventory of X amount, auditors can physically count the stock (in reality they wouldn't count all) to make sure the figure given was roughly correct.

    Any item on the financial statements will have some sort of test that auditors will do to make sure it's approximately the truth.
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
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