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The reliability theory holds that only transactions that may be tested really should be recorded. A supplier invoice could well be adequate proof that an expense has long been recorded. It is a important theory for auditors who want the evidence to help transactions.
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The period of time theory will be the idea check these guys out that a company ought to record the outcome of its operations over an ordinary time frame. It is supposed to create a normalized check that set of comparable periods when can then be employed to investigate tendencies inside the provided interval.