Senior Audit Associate Interview Questions and Answers for Freshers

Prudence concept is an accounting principle that requires caution and carefulness in financial reporting.

• Prudence concept suggests that a company should not overstate its assets or income, and should not understate its liabilities or expenses.

• It is also known as conservatism principle.

• This principle helps in avoiding over-optimism and overconfidence in financial reporting.

• For example, if a company is uncertain about the collectability of its accounts receivable, it should rec...read more