what accounts do you adjust after an audit?

Question

assets, revenues, expenditures, liabilities, etc.

Answer 1

By the time the audit is finished and the auditors have left your premises, your accounts should be ready for the next financial year, i.e. you should only bring forward balance sheet items. Income statement items are never brought forward to the next fiscal year. So for this reason, you put through all the audit adjustments involving balance sheet items, but you net off all the adjustments involving income statement items and adjust that net amt to Retained Earnings account. Make sure you double check by ensuring the Retained Earnings balance you bring forward ties up to that in the audited accounts.

Answer 2

In addition to what sandy wrote... you also do not carry forward the expenditures, you close those accounts by transferring the whole amount into profit & Loss account. Similarly, all income accounts are transferred into profit & Loss account. The balance of P/L Account is then taken to the balancesheet.

Answer 3

Whatever needs adjusting. Whoever did the audit will tell you what needs adj.

Answer 4

It depends on the nature of the adjustments.