Is a cash book sufficient to provide to the accountant for auditing? What are cash flow records and accounting records?

Posted by City AI Accounting on 2025-03-06 | Featured

Is a cash book sufficient to provide to the accountant for auditing?
What are cash flow records and accounting records?

Here is a brief explanation highlighting the differences between cash flow records and accounting records:

A cash flow record simply tracks income and expenses, while accounting records provide a comprehensive and accurate financial overview.

An audit report relies on complete accounting records, which form the foundation for preparing financial statements (such as the balance sheet and profit and loss statement). These statements must be reviewed and certified by a professional accountant before being submitted to the Inland Revenue Department (IRD) along with the Profits Tax Return.

Since audited financial statements are a prerequisite for filing the Profits Tax Return, maintaining accurate and complete accounting records is essential for proper tax compliance. Accounting records are indispensable for fulfilling corporate tax obligations and must be handled with precision and professionalism.

Therefore, maintaining proper and complete accounting records is critical for a company's tax compliance and should be entrusted to professional accountants or accounting firms.

At City AI Accounting, we specialize in bookkeeping, auditing, tax filing, and corporate secretarial services, offering professional and reliable support. For any inquiries, feel free to contact us.

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