Audit working papers contain detailed evidence and information gathered during an audit, forming the basis upon which auditors can form an opinion and providing critical future reference.
A comprehensive series of documents providing guidance on the application of auditing standards, originally issued by the Auditing Practices Committee (APC) and subsequently adopted by the Auditing Practices Board (APB).
The Auditing Practices Board (APB) was established to set high standards for auditing in the UK and the Republic of Ireland. It functioned from 1991 to 2012, after which it was replaced by the Audit and Assurance Council.
The Auditing Practices Committee (APC) develops auditing standards and guidelines that ensure effective audit practices in accordance with legal and regulatory requirements.
The Auditing Practices Committee (APC) was a committee under the Consultative Committee of Accountancy Bodies, tasked with issuing auditing standards and guidelines between 1976 and 1991.
Basic principles and essential procedures with which auditors are required to comply in conducting any audit of financial statements.
The Auditing Standards Board (ASB) is the American Institute of Certified Public Accountants' (AICPA) senior technical committee designated to issue Statements on Auditing Standards (SASs). Since 2002, ultimate oversight of the auditing profession in the United States has rested with the Public Company Accounting Oversight Board (PCAOB).
An auditor is a person or firm appointed to carry out an audit of an organization, ensuring financial statements are accurate and adhere to regulations.
An auditor's certificate, opinion, or report is an official document issued by an independent auditor asserting the accuracy and fairness of an organization's financial statements.
Auditors' remuneration is the compensation paid to auditors for the services they provide in scrutinizing a company's financial statements. This term is often interchangeable with audit fees.
An auditors' report, also known as an audit report, is an official opinion issued by auditors appointed to examine the financial statements of a company or organization. The report provides an independent assessment of whether the financial statements present a 'true and fair view' of the company's financial performance and comply with regulatory requirements. It plays a crucial role in ensuring transparency and accountability in financial reporting.
Autarky refers to the policy of establishing a self-sufficient and independent national economy, aiming to reduce or eliminate dependence on international trade.
Identification of a bond certificate as having been issued under a specific indenture, thus validating the bond. Also, legal verification of the genuineness of a document, as by the certification and seal of an authorized public official.
Authoritarian management is characterized by dictatorial and domineering styles where managers value employees' unquestioned obedience.
An authoritarian society is characterized by the existence of governmental authority over numerous phases of human conduct while lacking approval by the people for governmental action. It is distinguished from a totalitarian society, which covers all phases of human conduct.
Authority delegitimizes effective functioning within organizations and public bodies, easing decision-making and enforcement of rules and regulations.
An individual granted special authorization to act as the auditor of a company under the Companies Act 1967 due to their experience. These authorizations ceased in 1978 and since 1989, authorized auditors are not eligible to audit listed companies.
In the UK, the statutory minimum of £50,000 for the share capital of a public company. There is no minimum share capital for private companies.
Authorized share capital refers to the maximum amount of share capital that a company is authorized to issue as detailed in the company's memorandum of association. It is sometimes referred to as nominal share capital, nominal capital, or registered capital.
Authorized shares, or authorized stock, refer to the maximum number of shares that a corporation can issue as stated in its corporate charter. A corporation is not obligated to issue all of its authorized shares.
AUTOGEN is an automated system managed by the IRS that generates and mails a Federal Tax Deposit (FTD) coupon to taxpayers. This form accompanies employment tax deposits made at any Federal Reserve Bank.
An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.
An Automated Teller Machine (ATM) is a computerized terminal that allows individuals to perform banking transactions, such as cash withdrawals and deposits, without the need for a bank teller. ATMs provide 24-hour electronic access to bank accounts.
An Automated Teller Machine (ATM) is a computerized device that provides customers with access to financial transactions in a public space without the need for a branch teller.
A computerized method for estimating the value of a property. Often used for mass appraisal purposes, such as the reassessment of a city's property tax base.
Automatic stabilizers are built-in changes in government spending and taxation that dampen the business cycle by adjusting automatically with the economy's performance without additional legislative action.
In labor economics, automatic checkoff refers to the authorization for the employer to deduct union dues and other assessments from an employee's salary automatically and remit them to the labor union; also called compulsory checkoff.
An automatic extension provides taxpayers with additional time to file their tax return by submitting IRS Form 4868 or Form 7004 by the original due date. However, the estimated tax payment remains due on the original filing date.
Automatic reinvestment is a financial process by which dividends or capital gains distributions from investments are automatically used to purchase more of the same or additional types of securities.
The automatic stay is a provision in U.S. bankruptcy law that halts all collection activities, including litigation, repossessions, and foreclosures, immediately upon filing a bankruptcy petition.
A mutual fund program that allows shareholders to receive a fixed payment each month or each quarter. The payment comes from dividends, including short-term capital gains, and income on securities held by the fund. Long-term capital gains are distributed annually when realized.
Automation refers to the process of operating devices or systems using automatic techniques, which may involve mechanical, electronic, or robotic methods.
Automobile liability insurance provides coverage for bodily injury or property damage for which the insured is legally liable due to an automobile accident. It is a fundamental aspect of auto insurance policies, ensuring financial responsibility for harm caused to others.
A personal automobile policy (PAP) provides comprehensive car insurance with multiple coverages, designed to replace the earlier Family Automobile Policy (FAP). It offers a wide range of protections including liability, medical payments, uninsured motorist coverage, comprehensive, collision, and several optional coverages.
Available hours refer to the total number of hours that can be allocated to complete a job, task, or process within an accounting period, expressed in terms of machine hours, direct labor hours, or production hours.
A guarantee of payment by a third party, often a bank, on a bill of exchange or promissory note, ensuring the instrument is honored.
An avatar is an image or representation of a computer user in an online forum, chat room, virtual reality program or game. Avatars range from simple, abstract images to complex, personalized, three-dimensional models.
AVCO stands for Average Cost Method, an inventory valuation method applied to calculate the cost of goods sold and end inventory by averaging the cost of all items available for sale during the period.
The term 'average' commonly refers to the arithmetic mean, which is a measure of central tendency. In finance, it refers to an appropriately weighted and adjusted arithmetic mean of selected securities designed to represent market behavior.
The Average Daily Balance is a method commonly employed by banks to compute interest charges, such as on credit card balances, when issuing monthly statements. It involves summing the amount owed on each day of the month and dividing by the number of days in the month.
The Average Collection Period is a key financial metric that measures the average number of days a company takes to collect payments from its credit customers.
Average Cost (also known as Weighted-Average Cost) is a method of determining the cost per unit by dividing total costs by the total output. This method includes recalculating the unit value for raw materials or finished goods after each new consignment.
The Average Cost Curve (ACC) in the long run represents the average cost per unit of output, taking into account the optimal production technology and scale. It is crucial for understanding economies of scale and business optimization.
A graphical depiction of the average cost per unit to produce a product for a given level of output based on current technology and scale employed by existing firms.
Average costing, also known as weighted average costing, is a method of cost accounting that assigns an average cost to each unit of production when items have a high degree of similarity. It is useful for inventory management and financial reporting.
A strategic investment approach where an investor lowers the average price paid for a company's shares by purchasing additional shares as the price decreases.
Average Fixed Cost (AFC) is a cost metric in economics that measures the fixed costs on a per-unit basis. It is calculated by dividing the total fixed costs by the number of units produced.
An accounting term referring to a calculated measure used to compare bonds of varying durations and repayment schedules by averaging the periods for which funds are available, weighted by the amounts available in each period.
The average tax rate is calculated by dividing total taxes paid by total income. It indicates the amount of tax paid per dollar earned, serving as a key measure in understanding overall tax burden.
Avoidable costs are expenses that can be eliminated if a particular decision or course of action is taken, such as ceasing production of a specific product. They are crucial in determining the financial impact of business decisions.
Avoidance of tax refers to legal strategies and methods by which a taxpayer reduces their tax liability, often through investing in tax shelters or utilizing other deduced deductions and credits allowed by tax law.
Avoiding probate involves using various estate planning techniques to eliminate assets from the legal probate process. Methods include jointly held property, living trusts, and lifetime gifting. It's important to note that avoiding probate does not exempt assets from federal estate or gift taxes.
Avoirdupois is a measure of weight customarily used for agricultural products and nonprecious metals. An avoirdupois ounce is lighter than a troy ounce; there are 16 ounces in an avoirdupois pound.
Avulsion refers to the sudden removal of land from one parcel to another, typically caused by the abrupt change of a watercourse such as a river.
A legal defense in which a senior executive claims ignorance of fraudulent or otherwise unlawful practices within their company. Famously coined during the 2005 trial of Bernie Ebbers, founder of WorldCom.
Awards are formal recognitions given to individuals or entities for achieving excellence in a specific field or meeting certain predefined criteria. These recognitions can be in the form of trophies, medals, certificates, or other tangible items that symbolize achievements.
Away from home refers to scenarios where sleeping arrangements are necessary for at least one night before returning home, allowing for the deduction of 'ordinary and necessary' travel expenses on a business trip.
The phrase 'axe to grind' denotes a personal interest or hidden agenda. It implies leveraging others, often without their full awareness, to fulfill personal objectives.
In the context of legal proceedings, the defendant's principal pleading is a formal written response to the plaintiff's complaint, containing denials of the allegations, affirmative defenses, and any potential counterclaims.
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It is used to account for declines in value as assets age and wear out.
Depreciation refers to the reduction in the value of an asset over time, often due to wear and tear. This accounting process allows businesses to allocate the cost of a tangible asset over its useful life.
The term 'in arrears' refers to the status of payments that are overdue. In financial terms, it commonly indicates that the last payment was made at the end of a period rather than in advance. It can also mean that payments are in default, indicating non-compliance with the agreed payment schedule.
An Internet address is a locator for an object accessible on the Internet, such as a website, an email address, or an IP address, helping in identifying devices, resources, and services.
An Internet Service Provider (ISP) is a company or organization that offers services for accessing, using, or participating in the Internet.
A market order is a buy or sell order to be executed immediately at the current market prices. These orders guarantee execution but do not guarantee a specific price.
A power of appointment is a legal authority granted to an individual (the appointor) allowing them to designate who will receive certain property or interests, typically within the contexts of trusts and estates.
A secondary market is a marketplace where investors buy and sell securities they already own. It differs from the primary market, where securities are initially issued. The secondary market provides liquidity and enables price discovery for traded assets.
The SCFP is a financial statement that provides a detailed picture of a company's financial health over a specific period, highlighting the changes affecting working capital and non-working capital due to significant noncurrent transactions.
A value-added statement outlines the wealth that a company has created for its stakeholders and how that wealth is distributed among employees, shareholders, governments, and others.
A Value-Added Tax (VAT) is a type of indirect tax levied on goods and services at each stage of production or distribution where value is added. It is prevalent in many countries worldwide and represents a significant source of revenue for governments.
