[AOCI]

Hi,

I have a quick question about roll-forwarding in an audit planning.

I don’t quite understand the concept.

To my understanding, it’s about using the prior year balance to make sure that end year balance is reasonable.

For example, end year balance sheet’s retained earning balance is 100K and beginning year balance is 90K. There

are no changes in equity except a current year net income which is 10K.

So 90K (BEG)+10K (NI)= 100K (END Balance).

Am I right?

FAR-82!
REG-82 Again!
BEC-78!
AUD-84!

Done with the exam and LICENSED in VA as of 11/17/2015.

[Gatorbates]

Yep.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Gatorbates]

Yep.

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[musicamor]

The purpose of a rollforward is to prove out the balance of an account between two periods of time. The rollforward is usually summarized and it speaks to the major changes in an account.

For example, a bad debt rollforward would look something like this:

Beginning Balance – $xx

Plus: additions (accruals) – $xx

Plus: recoveries – $xx

Less: write-off's – $xx

Ending Balance – $xx

Texas CPA - licensed in 2012!!!

[musicamor]

The purpose of a rollforward is to prove out the balance of an account between two periods of time. The rollforward is usually summarized and it speaks to the major changes in an account.

For example, a bad debt rollforward would look something like this:

Beginning Balance – $xx

Plus: additions (accruals) – $xx

Plus: recoveries – $xx

Less: write-off's – $xx

Ending Balance – $xx

Texas CPA - licensed in 2012!!!

[Author]

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