SA & Co Accountants & Advisors

SA & Co Accountants & Advisors A Registered Public Accounting, Tax and Business Advisory Firm in PNG offering business solutions to SME's and Non Profit organisations in Lae and Goroka.

11/02/2026

Roles of the Audit Committee of the Board

The Audit Committee is a standing subcommittee of the Board of Directors responsible for providing independent oversight of the Company’s financial reporting, internal control environment, audit processes, and compliance framework.

Key Roles and Responsibilities

1. Oversight of Financial Reporting
Ensure financial statements present a true and fair view of the Company’s financial position.

Confirm statements are prepared in accordance with applicable accounting standards and regulatory requirements.

Review significant accounting policies, estimates, and judgments.

2. Oversight of Internal Controls and Risk Management

Evaluate the adequacy and effectiveness of internal control systems.

Review the Company’s risk management framework and key financial and operational risks.

Monitor management’s remediation of control weaknesses.

3. External Audit Oversight

Recommend appointment, reappointment, or removal of external auditors.

Review audit scope, audit plans, and audit fees.

Consider audit findings and management responses.

Safeguard the independence and objectivity of external auditors.

4. Compliance and Governance Oversight

Monitor compliance with laws, regulations, and corporate governance requirements.

Review reports on fraud, misconduct, and regulatory breaches.

Ensure appropriate whistleblower and ethics mechanisms are in place.

5. Internal Audit Function

Approve internal audit plans and budgets.

Assess performance, independence, and resourcing of internal audit.

Ensure internal audit findings are addressed by management.

6. Reporting to the Board

Provide regular reports to the Board on financial reporting, audit results, internal controls, risks, and compliance matters.

Escalate significant issues and recommend corrective actions.

Simple Summary

The Audit Committee provides independent oversight of financial reporting, internal controls, auditing, risk management, and compliance, and reports its findings and recommendations to the Board.

28/01/2026

How To Remember Debits and Credits in Accounting (DEAD CLIC)

Double entry is a fundamental theory to master in the world of accountancy and as an accountant, it is important to fully understand the concept.

One of the most common questions asked in the accounting world is “what is the double entry for ______?”

Even if you haven’t fully got to grips with double entry just yet, there is an easy way to remember which way round the debits and credits should be entered for any transaction.

That is to remember the mnemonic DEAD CLIC.

DEAD CLIC is a simple memory aid that helps you remember which accounts increase with debits and which increase with credits.

DEAD Accounts

These accounts increase with Debits and decrease with Credits.

D – Drawings
Owner’s withdrawals for personal use.

E – Expenses
Costs incurred to run the business, such as rent, salaries, utilities.

A – Assets
Resources owned or controlled by the business, such as cash, inventory, equipment.

D – (Repeat emphasis)
Drawings are often highlighted twice in teaching to avoid confusion with expenses.

CLIC Accounts

These accounts increase with Credits and decrease with Debits.

C – Capital (Equity)
Owner’s investment and retained earnings.

L – Liabilities
Amounts owed to outsiders, such as loans and payables.

I – Income (Revenue)
Money earned from business activities.

C – (Closing reminder)
Credits increase claims against assets.

Why DEAD CLIC Works

It aligns perfectly with the accounting equation:

Assets = Liabilities + Equity

• Assets and expenses reduce equity when they increase, so they sit on the debit side.
• Liabilities, income, and capital increase equity or claims on assets, so they sit on the credit side.

Quick Summary

Debit increases:
Assets
Expenses
Drawings

Credit increases:
Liabilities
Income
Capital

Once you understand DEAD CLIC, debits and credits stop being confusing and start making sense logically.

Accounting Knowledge Concepts

28/01/2026

How to Use DEAD CLIC: Debit and Credit Examples

DEAD CLIC is a simple mnemonic to remember which accounts increase with debits and which increase with credits. Once you understand it, posting transactions becomes logical instead of memorization.

DEAD – Debit Increases

D – Drawings
Owner withdraws cash from the business.
Example: Owner withdraws $1,000 cash
Debit: Drawings $1,000
Credit: Cash $1,000

E – Expenses
Payments for business operations.
Example: Paid $500 rent
Debit: Rent Expense $500
Credit: Cash $500

A – Assets
Resources controlled by the business.
Example: Bought inventory for $2,000 cash
Debit: Inventory $2,000
Credit: Cash $2,000

D – (Repeat for emphasis on Drawings)
Helps remember personal withdrawals are debit accounts.

CLIC – Credit Increases

C – Capital (Equity)
Owner’s investment or retained earnings.
Example: Owner injects $5,000 cash
Debit: Cash $5,000
Credit: Capital $5,000

L – Liabilities
Obligations to outsiders.
Example: Took a loan of $10,000 from bank
Debit: Cash $10,000
Credit: Loan Payable $10,000

I – Income (Revenue)
Money earned from operations.
Example: Sold services for $1,500 cash
Debit: Cash $1,500
Credit: Service Revenue $1,500

C – (Closing reminder)
Credits increase claims against assets.

Address

Lae
411

Telephone

+67572660141

Website

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