Audit Engagement
Agreement between a Certified Public Accountant firm and its client to perform an audit.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Audit Evidence
includes written and electronic information (such as checks, records of electronic fund transfers, invoices, contracts, and other information) that permits the auditor to reach conclusions through rea...
OpenAudit evidence
Information used by the auditor to reach conclusions on which the audit opinion is based.
OpenAudit Evidence
Audit evidence consists of the information the auditor uses to reach conclusions on which the audit opinion is based, including documents, confirmations, calculations, and analytical results.
OpenAudit Evidence
Audit evidence is information used by auditors to support their conclusions and opinion.
OpenAUDIT FAILURE
is an Instance where the auditor said that the financial statements were fairly stated when in fact, they were not.
OpenAudit opinion
The auditor’s official conclusion about whether the financial statements are presented fairly.
OpenAudit Opinion Letter
is a signed representation by an auditor as to the reliability and fairness of a set of financial statements. It is usually presented at the beginning of an audit report.
OpenAudit planning
Developing an overall strategy and detailed audit plan.
OpenAudit Risk
Audit risk is the risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated.
OpenAudit scope
The extent and boundaries of audit procedures to be performed.
OpenAudit trail
A record that traces accounting transactions from source documents to the financial statements.
OpenAudit working papers
Documentation that records the work performed and evidence obtained by the auditor.
OpenAverage Age of Inventory
is calculated by the formula: 365 / inventory turnover.
OpenAveraging
Leveraging means use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.
OpenB.O.Y
it is mean Beginning Of Year.
OpenBank current account
Bank Current account is a checks account
OpenBank Errors
Errors made by the bank on a company's bank account. These are usually infrequent but could include an incorrect amount of a check or deposit or a check or deposit recorded in the wrong account
OpenBank Overdraft
A negative balance in the bank's records for the company's checking account. classified under current liabilities
OpenBank Reconciliation
The process of comparing the amounts in the Bank account in company books to the amounts appearing on the bank statement. The objective is to be certain that there is consistency between the amounts a...
OpenBank Reconciliation
Bank reconciliation is the process of comparing the company’s cash records with the bank statement to identify differences and ensure accuracy.
OpenBank reconciliation procedure
The procedures for making the reconciliation by matching the bank account statement from the bank with the bank statement on the company's books
OpenBank Reconciliation Statement
A statement that matches the company's cash balance per its books to the balance per bank statement.
OpenBank Reconciliation Statement
A statement that matches the company's cash balance per its books to the balance per bank statement.
OpenBank Statement
Usually refers to a statement from the bank showing the activity in a company's checking account. The statement includes the deposits received by the bank, checks paid by the bank, bank service charge...
OpenBankruptcy
"Bankruptcy is the state of bankruptcy of an organization or individual, i.e. the inability to pay debts. In the United States, bankruptcy can take one of three forms: A) Chapter 7 is an involuntary l...
OpenBeginning Inventory
The inventory is at the beginning of the period.
OpenBehavior
The way an individual behaves or behaves, especially towards others, and is symbolized by accounting for accounting behavior that is affected by the behavior of humans.
OpenBehavioural Accounting
is the explanation and prediction of human behavior in all possible accounting contexts, e.g., adequacy of disclosure, usefulness of financial statement data, attitudes about corporate reporting pract...
OpenBelow the line
in accounting, denotes credits or debits affecting balance sheet accounts rather than the income statement. Extraordinary items may also appear below the net profit line in the income statement, but a...
OpenBenchmark
Benchmark is a study to compare actual performance to a standard of typical competency; or, a standard for the basis of comparison as being above, below or comparable to.
OpenBeneficial Owner
The beneficial owner is the person who enjoys the benefits of ownership even though the ownership is in another name (often used in risk arbitrage).
OpenBeneficial owner
The natural person who ultimately owns or controls an entity.
OpenBest practices
Best practices are the generally understood operating characteristics of companies that have succeeded in terms of high reimbursement rates, high outreach, and progress toward generating surplus.
OpenBETA
BETA in securitites, is a statistical measurement correlating a stock's price change with the movement of the stock market. The beta is an indicator or statistical measure of the relative volatility o...
OpenBetterment
Improvement expenditures that improve or increase the service capabilities of an asset even beyond its original new condition; These costs can be capitalized by increasing the cost of the asset
OpenBIC Code
Swift or BICs are international codes for banks that need them when sending money across countries or for government purposes.
OpenBid
A Bid is a tender or quotation for a project or other to reach the best price required for the same quality and time conditions in the tender.
OpenBid price
The bid price is the highest price to buy, for example, a security, or the lowest execution price in contracts that include a tender.
OpenBifurcated
Bifurcated generally means to be divided into or made up of two parts. In accounting an example would be: to split the cash account in the accounting records into two accounts, cash – principal and ca...
OpenBIG 4
Big Four The four largest public accounting firms in the U.S.: Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers. Typically, these four firms perform the audits of the largest publicly-traded corp...
OpenBig Bang
Big Bang Changes in UK stock exchange practices that took place in 1986. They permitted institutions such as banks and insurance companies to own stock exchange subsidiaries, abolished the segregation...
OpenBIG BATH
Big Bath is a business strategy in which a company manipulates its income statement to make poor results look even worse. Strategy being that the following year will show significant improvement. Big ...
OpenBig Board
Big Board New York Stock Exchange's price display; also used as a synonym for the exchange
OpenBig Five
Big Five The largest accountancy firms: KPMG Peat Marwick, Price Waterhouse Coopers, Ernst & Young, Deloitte & Touche and Arthur Andersen. Individual country arms of these groups may have slightly dif...
OpenBig Four
Big Four The four largest public accounting firms in the U.S.: Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers. Typically, these four firms perform the audits of the largest publicly-traded corp...
OpenBILL OF LADING
BILL OF LADING is the contract between the owner of the goods and the cargo carrier to move the goods to a specified destination. A clean bill of lading is issued by the carrier verifying receipt of t...
Openbill of materials
A listing of the materials included in a product. A bill of material could be thought of as a bakery's recipe for producing one of its products
OpenBlack Markets
are created when buyers and sellers meet to negotiate the exchange of a prohibited or illegal good. More generally, it is any unofficial market in which prices are inordinately high.
OpenBlanket Authorization
is direct authority to act without having to gain approval for each action. For example: "Blanket authorization was given to him for all his business travel".
Open