Adjusting events, also known as post-balance-sheet events, occur between the balance-sheet date and the date on which financial statements are approved, providing additional evidence of conditions existing at the balance-sheet date.
An adverse opinion is a judgment expressed by auditors indicating that the financial statements of an entity do not accurately reflect its financial position. This is often due to material discrepancies between the auditor's findings and the company's reports.
An audit completion checklist is a crucial tool used by audit staff to ensure that the financial statements being audited provide a true and fair view in compliance with statutory disclosures and accounting standards.
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.
A Consolidated Balance Sheet, or Consolidated Statement of Financial Position, summarizes the financial status of a parent company and its subsidiaries as a single economic entity.
A consolidated profit and loss account (also known as a consolidated income statement) combines the individual profit and loss accounts of group entities, presenting a comprehensive view of the group's financial performance.
In traditional UK accounting practice, 'Dissimilar Activities' served as a reason for excluding a subsidiary undertaking from the consolidated financial statements of a group. It applied to situations where the activities of one undertaking differed significantly from others in the group, potentially compromising the obligation to present a true and fair view. However, current standards under both the Financial Reporting Standard (FRS) applicable in the UK and Ireland and International Accounting Standards (IAS 27) no longer allow exclusions on these grounds.
A qualification by an auditor that indicates the financial statements provide a true and fair view, with exceptions noted due to limitations of scope or disagreements in treatment or disclosure that do not warrant an adverse opinion.
Costs or income that affect a company's profit and loss account and need special disclosure due to their unusual size or incidence, despite falling within ordinary activities.
This concept outlines the specific circumstances under which a subsidiary may be excluded from consolidation in a parent company's financial statements under the Financial Reporting Standard Applicable in the UK and Republic of Ireland. This ensures the financial statements provide a true and fair view.
The requirement that financial statements should not be misleading. 'Fair presentation' ensures that financial reports provide a true and fair view of the company's financial position in accordance with accounting standards.
Financial accounting is the branch of accounting concerned with classifying, measuring, and recording the transactions of a business, ultimately presenting the performance and financial position of a business through standardized financial statements.
Generally accepted accounting principles tailored to small companies to reduce the compliance burden relative to the informational value provided to the owners.
An essential audit concept, primarily used in the UK, requiring auditors to ensure that the published accounts of companies present a 'true and fair view' of the organization's financial position, even if it means departing from legal requirements.
