CPADavao.com

04/01/2026

Accounting Cycle
The process of recording, classifying, and summarizing financial transactions.

Understanding the Accounting Cycle

1️⃣ Identify Transactions – record every financial activity.
2️⃣ Journal Entries – write transactions in the journal.
3️⃣ Post to Ledger – move entries to the general ledger.
4️⃣ Trial Balance – check that total debits = credits.
5️⃣ Adjust Entries – update for accruals or deferrals.
6️⃣ Financial Statements – prepare income statement & balance sheet.
7️⃣ Close Accounts – reset temporary accounts for the next period.

💡 The accounting cycle keeps your books accurate and ready for reporting.

04/01/2026

SALES

04/01/2026

As our work is like an iceberg.
Only a small portion is visible — the reports, the assurance, the advisory outputs.

But beneath the surface lies the real effort:

✔️ Managing resistance to change
✔️ Conducting deep risk assessments
✔️ Following up on complex findings
✔️ Working within tight timelines and limited resources
✔️ Performing data analysis and root-cause investigations
✔️ Addressing knowledge gaps across functions
✔️ Navigating ethical dilemmas
✔️ Balancing expectations while maintaining independence

Internal audit isn’t just about pointing out issues — it’s about strengthening processes, enabling better decisions, and supporting sustainable growth.

The visible tip may be small, but the value beneath is what keeps organizations afloat.

Accounting Knowledge Concepts

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