Account reconciliation is a critical accounting procedure used to ensure that balances in financial records correspond with the actual account balances, typically those presented in bank statements. It is essential for maintaining the accuracy and integrity of a company's financial data.
Accounting records are essential documentation that provides a detailed account of financial transactions pertaining to a particular organization, allowing for accurate tracking and analysis of financial performance over time.
An accounting system is designed to record, categorize, and report the financial transactions and events of a business in compliance with its policies and procedures.
The American National Standards Institute (ANSI) is a private, non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States.
A commentary by one appraiser on the appraisal report prepared by another appraiser, often completed to ensure accuracy and compliance with relevant standards.
ACIS stands for Associate of the Institute of Chartered Secretaries and Administrators, a professional designation for corporate governance, compliance, and company secretarial professionals.
Audit Command Language (ACL) is an industry-standard computer-assisted audit tool developed by ACL Services Ltd. It enables auditors to analyze large volumes of data in various formats to detect anomalies that may indicate fraud, weak controls, or other areas of concern. The company offers a range of data-analytics software for audit, risk-management, and compliance professionals.
In public companies, a committee of non-executive directors that is responsible for oversight of financial reporting, internal and external audits, compliance with regulatory codes, and risk management. This committee enhances accountability, auditor independence, and public confidence.
A written document that explains the auditing policies and procedures of a firm, ensuring consistency and compliance in auditing practices.
An audit trail, also known as a paper trail, is the sequence of documents, computer files, and other records that provide detailed evidence of a transaction, allowing auditors to trace and verify the integrity of the transaction from start to finish.
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.
Bank or brokerage house departments not directly involved in selling or trading. The back office sees to accounting records, compliance with government regulations, and communication between branches.
Backdating refers to the practice of making documents, agreements, or payments effective from a date in the past. This is often done to reflect an earlier agreed-upon period for financial or employment purposes.
A Code of Ethics is a crucial framework for guiding professional conduct and maintaining integrity within a profession. It outlines the standards of behavior and practices that are expected, providing a foundation for ethical decision-making.
A company auditor examines the financial statements of a company to ensure accuracy and compliance with the Companies Act. Since 1989, appointment as a company auditor is restricted to registered auditors only.
An EU directive (2006) designed to enhance public confidence in financial reporting within the EU by increasing the transparency of financial statements and reports.
Compliance in accounting and corporate governance refers to the adherence to laws, regulations, and internal controls that govern an entity's operations, ensuring legal and regulatory obligations are met.
A court bond, also known as a judicial bond, is a form of surety bond that ensures compliance with a court's orders and protects against potential financial losses from legal proceedings.
An in-depth analysis of internal control features within an organization, specifically designed to evaluate their effectiveness and compliance.
Divestiture involves the loss or voluntary surrender of a right, title, or interest. It can also be a legal remedy where the court orders the offending party to rid itself of assets, often used in the enforcement of antitrust laws.
The comprehensive appraisal of a business or its assets, evaluating its liabilities, profitability, cash flow, policies, and compliance, typically conducted prior to a major transaction or stock exchange flotation.
EDGAR is an automated system employed by the U.S. Securities and Exchange Commission (SEC) for the collection, validation, indexing, acceptance, and forwarding of submissions required by law to be filed by companies and other entities.
An environmental audit, also known as a green audit, assesses the impact of an organization's activities on the environment. Its goal is to ensure an organization’s operations comply with environmental policies, and recommendations for sustainability are regularly reviewed. Such audits can be internal or conducted by external consultants.
Comprehensive overview of the various categories of environmental costs and their implications for businesses in ensuring environmental stewardship.
The Financial Action Task Force (FATF) is an intergovernmental organization established to develop policies to combat money laundering and terrorist financing.
A comprehensive guide to understanding the role, functions, and importance of the Financial Industry Regulatory Authority (FINRA) in maintaining market integrity and protecting investors.
A Financial Reporting Release (FRR) is a pronouncement made by the Securities and Exchange Commission (SEC) in the United States on matters of financial reporting policy.
The Financial Reporting Review Panel (FRRP) is an essential entity tasked with upholding the integrity and quality of financial reporting by examining and ensuring compliance with reporting standards.
The Foreign Corrupt Practices Act (FCPA) is a United States legislation enacted in 1977 designed to prevent bribery and corruption by U.S. companies in their overseas operations. A 1998 amendment extended its scope to include actions by foreign citizens and companies while on U.S. territory.
The Foreign Corrupt Practices Act (FCPA) is a United States law enacted in 1977 aimed at preventing the bribery of foreign officials to obtain or retain business. It mandates accounting transparency requirements and imposes internal controls and disclosure requirements.
The losses or additional charges imposed on an individual or entity for failing to meet specific obligations or conditions in a financial or contractual agreement.
Form 8-K is a report filed by publicly traded companies with the Securities and Exchange Commission (SEC) to announce significant corporate events that shareholders and the SEC should know about.
GRC is an integrated approach to managing an organization's governance, risk management, and compliance activities. It promotes cohesive information sharing and coordination to enhance purpose and efficiency.
A report issued in 1998 by a committee under the chairmanship of Sir Ronald Hampel, reviewing the implementation of the Cadbury Code and the Greenbury recommendations and combining these into a new Corporate Governance Code.
Information inductance refers to the extent to which a person's behavior is affected by the information they are required to communicate. This concept highlights the potential biases in the presentation and interpretation of key financial data.
ICSA (Institute of Chartered Secretaries and Administrators) is a global professional body for governance, risk, and compliance professionals, offering certifications, networking opportunities, and thought leadership to advance the highest standards of governance practices.
The Institute of Chartered Secretaries and Administrators (ICSA) is an international professional body that represents the interests of professionals in corporate governance and compliance, notably company secretaries.
An interim audit is the examination of the financial records and operations of a company during the course of the financial year, ensuring accuracy and compliance prior to the final year-end audit.
An internal audit is a self-conducted examination of an organization's operations, intended to evaluate and improve the effectiveness of internal controls, risk management, and governance processes.
An internal auditor is an employee who is responsible for providing independent and objective evaluations of the company's financial and operational business activities. They assess compliance with laws and regulations, ensure policies are effective, and help maintain organizational integrity.
An Internal Control Questionnaire (ICQ) is a structured set of queries used by auditors and management to evaluate the effectiveness of an organization's internal controls.
A comprehensive system of controls designed to facilitate orderly and efficient business operations, ensure adherence to management policies, safeguard assets, and maintain accurate and complete records.
An international boycott country is one that may impose or encourage participation in economic boycotts or trade restrictions against other nations or entities, often for political or social reasons.
An overview of the standards that provide the fundamental principles and essential procedures for auditing, issued by the International Auditing and Assurance Standards Board (IAASB).
A joint audit is an audit conducted by two or more auditing firms who collaborate to prepare a single audit report, enhancing the overall audit quality and credibility.
A legal form is a structured model of a legal document that contains the necessary phrases and words of art required to ensure the document is procedurally correct in accordance with legal standards. The meticulous arrangement of such forms serves as a template for drafting legally binding documents such as contracts, wills, or pleadings, ensuring their compliance with specific legal requirements and formalities.
A License Bond is an instrument that guarantees compliance with various city, county, and state laws that govern the issuance of a particular license to conduct business.
A detailed analysis provided by an auditor, examining a client's financial statements in depth to ensure accuracy, compliance, and to provide insights into the financial health of the organization.
Mark to Market (MTM) is a financial accounting method where the value of an asset is adjusted to reflect its current market value rather than its book value. It's used in margin accounts to ensure compliance and by mutual funds to report daily net asset values.
The term 'Officers of a Company' typically refers to the individuals who hold significant managerial or administrative positions within an organization, including Directors and the Company Secretary. These officers play crucial roles in the governance and operational oversight of the company.
Penalties for repeated errors are imposed to discourage consistent inaccuracies in tax filings or financial reports. These penalties serve as a deterrent for habitual mistakes and ensure compliance with legal standards.
A Permit Bond is a type of surety bond required by a government agency to ensure that businesses or individuals comply with laws and regulations governing a specific activity requiring a permit.
Information (usually unpublished) about a company that is likely to cause its share prices to move. It is often critical and confidential, impacting investor decisions and market valuation.
Quality is a measure of the degree to which a product, service, or process meets certain standards or criteria of excellence. It is a critical factor in various fields such as manufacturing, software development, customer service, and healthcare.
A Recognized Professional Body (RPB) is an organization that meets specific regulatory criteria to oversee the conduct and practice of professional accountants, providing members with the necessary accreditation and compliance guidelines to ensure high standards within the accounting profession.
A Recognized Supervisory Body (RSB) plays a pivotal role in maintaining the standards of the accounting profession by overseeing the conduct and quality of auditors and accounting professionals within a regulatory framework.
Records Management refers to a system used to collect, record, store, and eventually discard information. Effective records management ensures that information is correctly managed throughout its lifecycle, supporting compliance, operational efficiency, and risk management.
A registered trader is a taxable person who has complied with the registration for value added tax (VAT) regulations. This compliance allows them to charge VAT on taxable supplies and reclaim any VAT they have paid on their purchases.
Regulation refers to a set of rules or directives made and maintained by an authority (often a government agency) to administer and enforce a law. Regulations are essential for establishing standards, maintaining order, and ensuring compliance within various sectors including business, finance, and public safety.
Regulation Z is a body of regulations promulgated by the Federal Reserve Board pursuant to the federal Truth in Lending Act (TILA), ensuring that borrowers are informed of the terms of credit, including the Annual Percentage Rate (APR) and the total cost of credit.
A regulatory agency is a government body tasked with the oversight, control, and supervision of specific activities or areas of public interest.
A Revenue Ruling (REV. RUL.) is an official interpretation by the Internal Revenue Service (IRS) that provides guidance for taxpayers on how the IRS applies the law to specific factual situations. These rulings are intended to promote understanding and compliance with tax laws.
Legislation introduced in response to major corporate financial scandals to enhance corporate transparency and accountability.
The Sarbanes-Oxley Act of 2002, often referred to as Sarbox or SOX, is a landmark piece of U.S. legislation designed to enhance corporate governance, financial transparency, and auditing standards in response to a series of high-profile corporate scandals, including the infamous Enron scandal.
A standard is an established and fixed measure or norm used in assessing quality or performance. Standards ensure consistency, reliability, and quality across various domains, such as products, processes, or services.
Statutory Notice refers to a legally mandated period during which parties must be informed about a specific event or action that is scheduled to occur. This notice ensures that all relevant parties have adequate time to prepare or respond as required by law.
A code of best practice for institutional investors, such as pension funds, insurance companies, and investment trusts, which sets guidelines on how these entities should engage with their investee companies, notably in the exercise of voting rights.
The process of distributing a tax charge among different sources of income to ensure appropriate tax liability allocation.
The tax code refers to the body of tax law applicable in a country, within which tax legislation is codified rather than laid down by statute. Understanding the nuances of the tax code is essential for both individuals and businesses to ensure compliance with tax obligations.
A timekeeper is responsible for recording and monitoring the working hours of employees, ensuring accurate time records for payroll and compliance.
Tokenism refers to the practice of making a superficial or symbolic effort to appear inclusive, especially by recruiting a small number of people from underrepresented or marginalized groups to comply with affirmative action or diversity policies.
UK GAAP, or Generally Accepted Accounting Practice, refers to the framework of accounting standards and principles that accountants in the United Kingdom must follow to ensure financial statements are consistent and comparable.
Write Once, Read Many (WORM) is a storage technology that allows data to be written to a device a single time, but read multiple times. Commonly applied in data archiving and compliance.
