Basic Auditing & Assurance terms Volume 1By Ammar Mushtaq Khan 3
is sampling to determine whether internal control compliance is greater than or less than the tolerable deviation rate.
Accounting and review services
are governed by official pronouncements covering compilation and review engagements. Compilation is presenting in the form of financial statements information that is the representation of management (owners) without expressing assurance. Review is inquiry and analytical procedures to provide the accountant a basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with U.S. generally accepted accounting principles.
includes journals, ledgers and other records, such as spreadsheets, that support financial statements. It may be in computer readable form or on paper.
means an approximation of a monetary amount in the absence of a precise means of measurement.This term is used for an amount measured at fair value where there is estimation uncertainty, as well as for other amounts that require estimation. Where accounting estimates involving measurement at fair value, the term fair value accounting estimates is used Or An approximation of a financial statement element. Estimates are included in historical financial statements because some amounts are uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely,cost-effective basis.
are alternative ways of reporting and disclosing information in financial statements and related footnotes.
Debts due from customers from sales of products and services reported as a current asset.
are the records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers; journal entries and other adjustments to the financial statements that are not reflected in journal entries; and records, such as work sheets and spreadsheets, supporting cost allocations, computations,reconciliations, and disclosures.
Accounting research bulletins
(ARBs) were issued years ago to set generally accepted accounting principles. Some have not been superseded by pronouncements of the Financial Accounting Standards Board. Those old pronouncements still qualify as generally accepted accounting principles.