Internal audit provides an independent evaluation of an organization's internal control mechanisms and risk management strategies. Management uses internal audit reports to identify areas that need improvements. Internal audit is an objective consulting service designed to assure compliance with set procedures and improve organizations' operations.
Internal audit adds value to a business by providing insights and recommendations based on financial records assessments and processes analysis.
This kind of method, direct write-off method is referring to your question and it is considering a method that is used for recognizing bad debts expenses that are coming from credit sales of someone's account. With this method there is no account that is considering allowance and receivable that is found on someones's account is written-off directly to expense when there is uncollectible account expense.
One of the greatest advantages is simplicity because those companies who are doing this method have to make only two transactions.
La importancia de la contabilidad radica en que, sin ella, no sabrías cuánto dinero entra y sale de tu organización ni podrías planear para el crecimiento futuro
