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.
A written document that explains the auditing policies and procedures of a firm, ensuring consistency and compliance in auditing practices.
An in-depth look into the purpose and different types of audit tests, including compliance tests and substantive tests, which are crucial for assessing the accuracy and completeness of financial statements.
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.
A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. It records transactions chronologically and is frequently reconciled with the bank statement to ensure accuracy and integrity in financial reporting.
A complete audit is an extensive examination of a company's system of internal controls and the details of its books of account, including subsidiary records and supporting documents.
Comprehensive auditing is a thorough review process that encompasses evaluation of an organization's operations, compliance, and financial performance to ensure accuracy, efficiency, and adherence to laws and regulations.
Defalcation is a financial crime that involves the embezzlement of property or funds by an individual entrusted with its custody or control.
An embedded audit facility is a computer-assisted audit technique that integrates audit programs and additional data into a client's computerized accounting system to enable continuous auditing.
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.
General controls are designed to ensure the proper development, implementation, and operation of applications within computer-based accounting systems, ensuring the integrity of programs and data files.
An embedded audit facility created by auditors within a client's accounting system to continuously monitor and test internal processing functions using fictitious entities and transactions.
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 Control Questionnaire (ICQ) is a structured set of queries used by auditors and management to evaluate the effectiveness of an organization's internal controls.
Internal control risk refers to the likelihood that internal controls within an organization will fail to prevent or detect financial reporting inaccuracies, leading to potential financial misstatements. It is a critical component auditors assess to ensure the accuracy and reliability of financial statements.
A journal voucher is a document that provides detailed information and justification for a financial transaction requiring a journal entry in the accounting records. It is an essential element of an organization's internal control system.
Lapping is a fraudulent accounting practice in which an employee conceals a shortage of cash by delaying the recording of cash receipts, often involving the use of subsequent receipts to cover earlier thefts.
The term 'over-and-short' is frequently used in accounting to indicate discrepancies between recorded amounts and actual amounts, usually involving cash or inventory.
A purchase requisition is a formal document completed by a user department within an organization and sent to the purchasing department to request the acquisition of specific items. It details the quantity, specifications, potential supplier, required date, and delivery point.
An auditing technique focused on identifying and assessing the levels of risk in different areas of an organization's systems to concentrate efforts on the areas of highest risk, thereby improving the detection of errors or fraud.
The Sarbanes-Oxley Act of 2002, often abbreviated as SOX, is a United States federal law that mandates various regulations to improve the accuracy and reliability of corporate disclosures and to protect investors against fraudulent financial practices.
The Statements on Internal Auditing Standards (SIAS) are guidelines issued to enhance the competence and consistency of internal auditing within organizations.
Systems Development Controls refer to the internal controls that ensure the development of computerized systems is properly managed and secured. These measures mitigate risks by enforcing structured protocols such as the segregation of duties.
A foundational report providing directors of UK listed companies with guidance on risk management, internal controls, and their obligations under the Corporate Governance Code.
An audit test that takes a few transactions from the records of a business and follows them through every stage of the accounting system to ensure accuracy and compliance.
