Auditors should not be influenced by management’s desire to present facts in a more favourable （or unfavourable） form. The financial statements should reflect the substance of the underlying transactions and not merely their form, so that, for instance, the nature of each of the various types of liability is disclosed separately, i.e. they are not simply lumped together under one heading. Receivables, too, should be scrutinized to check, for example, that those receivables recoverable more than a year after the balance sheet date are disclosed separately.