An audience can refer to a group of people assembled to witness a presentation or performance, or the total number of individuals who are exposed to media or advertising content.
An independent examination and subsequent expression of opinion on the financial statements of an organization, involving collecting evidence through compliance and substantive tests.
The Audit and Assurance Council is a body established in 2012 to advise the Financial Reporting Council on matters related to audit and assurance, including the issuance of codes and standards. Unlike its predecessor, the Auditing Practices Board, the Council has a more limited and purely advisory role.
Audit Command Language (ACL) is a specialized software designed for auditors and financial professionals. ACL allows for data extraction, data analysis, and fraud detection in a versatile and efficient manner.
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.
The Audit Commission was an independent public body responsible for ensuring that public money was spent economically and effectively in various sectors including local government, housing, health, and emergency services across England and Wales. It was replaced in 2015 by a new audit and accountability framework.
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.
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.
Audit evidence encompasses the information and data collected by auditors to form an audit opinion on the financial statements of an enterprise. This evidence is derived from a variety of sources and through different methodologies to ensure the accuracy and reliability of the financial statements.
Audit exemption is the exemption from statutory audit by a registered auditor that can now be claimed by most small companies.
The divergence between the perceived role of an auditor and the expectations of financial statement users, subdivided into communication and performance gaps.
Audit Fees, also known as auditors' remuneration, are the amounts payable to auditors for conducting an audit of a company's financial statements, which must be distinguished from fees for non-audit work and approved during the company's annual general meeting.
An audit limited in scope due to restrictions on certain accounts, reduced period, or restricted access to records. Often pertinent in accounting and taxation scenarios.
A written document that explains the auditing policies and procedures of a firm, ensuring consistency and compliance in auditing practices.
An audit opinion is an expression provided by auditors within an auditors' report, stating whether the financial statements have been prepared consistently using appropriate accounting policies and standards, and if there is adequate disclosure of vital information.
A document outlining the strategy for managing inherent and control risks in relation to the financial statements of an audit client.
An audit program is a detailed listing of the steps to be taken by an auditor, such as a Certified Public Accountant (CPA), when analyzing transactions to determine the acceptability of financial statements. Major accounting firms may prepare an audit program for each client and require the person who does the work to sign or initial each step performed.
The Audit Programme is a document outlining individual audit tests to be performed as per the audit plan to ensure that the accounting system operates efficiently and effectively.
An audit report is a formal opinion or disclaimer issued by an auditor as a result of an audit or evaluation of an entity’s financial statements. It represents the auditor's findings and communicates them to the stakeholders.
Audit risk refers to the risk that auditors fail to qualify their audit report when the financial statements are materially misleading, i.e., do not provide a true and fair view. Audit risk is comprised of three components: inherent risk, control risk, and detection risk.
Audit rotation refers to a regulatory or policy requirement that mandates the periodic changing of an audit firm or auditor for a company to maintain the audits' objectivity and independence.
Audit rotation is the policy of appointing an audit firm for a set period only, after which a different firm must be employed. This practice aims to prevent the renewal of audits from influencing conduct and ensure auditor independence. However, it faces criticism for cost implications, disruption, and potentially reduced audit quality.
Computer programs used by auditors to examine an enterprise's computer files and review the system for compliance tests and substantive tests.
An audit strategy outlines the general approach and key components of the audit, serving as a blueprint for the audit plan, which details the specific procedures and steps to be taken.
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.
Audit working papers contain detailed evidence and information gathered during an audit, forming the basis upon which auditors can form an opinion and providing critical future reference.
A comprehensive series of documents providing guidance on the application of auditing standards, originally issued by the Auditing Practices Committee (APC) and subsequently adopted by the Auditing Practices Board (APB).
The Auditing Practices Board (APB) was established to set high standards for auditing in the UK and the Republic of Ireland. It functioned from 1991 to 2012, after which it was replaced by the Audit and Assurance Council.
The Auditing Practices Committee (APC) develops auditing standards and guidelines that ensure effective audit practices in accordance with legal and regulatory requirements.
The Auditing Practices Committee (APC) was a committee under the Consultative Committee of Accountancy Bodies, tasked with issuing auditing standards and guidelines between 1976 and 1991.
Basic principles and essential procedures with which auditors are required to comply in conducting any audit of financial statements.
The Auditing Standards Board (ASB) is the American Institute of Certified Public Accountants' (AICPA) senior technical committee designated to issue Statements on Auditing Standards (SASs). Since 2002, ultimate oversight of the auditing profession in the United States has rested with the Public Company Accounting Oversight Board (PCAOB).
An auditor is a person or firm appointed to carry out an audit of an organization, ensuring financial statements are accurate and adhere to regulations.
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.
Auditors' remuneration is the compensation paid to auditors for the services they provide in scrutinizing a company's financial statements. This term is often interchangeable with audit fees.
An auditors' report provides an independent opinion on the fairness and accuracy of a company's financial statements, central to ensuring transparency and integrity in financial reporting.
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.
Autarky refers to the policy of establishing a self-sufficient and independent national economy, aiming to reduce or eliminate dependence on international trade.
Identification of a bond certificate as having been issued under a specific indenture, thus validating the bond. Also, legal verification of the genuineness of a document, as by the certification and seal of an authorized public official.
Authoritarian management is characterized by dictatorial and domineering styles where managers value employees' unquestioned obedience.
An authoritarian society is characterized by the existence of governmental authority over numerous phases of human conduct while lacking approval by the people for governmental action. It is distinguished from a totalitarian society, which covers all phases of human conduct.
Authority delegitimizes effective functioning within organizations and public bodies, easing decision-making and enforcement of rules and regulations.
An individual granted special authorization to act as the auditor of a company under the Companies Act 1967 due to their experience. These authorizations ceased in 1978 and since 1989, authorized auditors are not eligible to audit listed companies.
In the UK, the statutory minimum of £50,000 for the share capital of a public company. There is no minimum share capital for private companies.
Authorized share capital refers to the maximum amount of share capital that a company is authorized to issue as detailed in the company's memorandum of association. It is sometimes referred to as nominal share capital, nominal capital, or registered capital.
Authorized shares, or authorized stock, refer to the maximum number of shares that a corporation can issue as stated in its corporate charter. A corporation is not obligated to issue all of its authorized shares.
AUTOGEN is an automated system managed by the IRS that generates and mails a Federal Tax Deposit (FTD) coupon to taxpayers. This form accompanies employment tax deposits made at any Federal Reserve Bank.
An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.
An Automated Teller Machine (ATM) is a computerized terminal that allows individuals to perform banking transactions, such as cash withdrawals and deposits, without the need for a bank teller. ATMs provide 24-hour electronic access to bank accounts.
An Automated Teller Machine (ATM) is a computerized device that provides customers with access to financial transactions in a public space without the need for a branch teller.
A computerized method for estimating the value of a property. Often used for mass appraisal purposes, such as the reassessment of a city's property tax base.
Automatic stabilizers are built-in changes in government spending and taxation that dampen the business cycle by adjusting automatically with the economy's performance without additional legislative action.
In labor economics, automatic checkoff refers to the authorization for the employer to deduct union dues and other assessments from an employee's salary automatically and remit them to the labor union; also called compulsory checkoff.
An automatic extension provides taxpayers with additional time to file their tax return by submitting IRS Form 4868 or Form 7004 by the original due date. However, the estimated tax payment remains due on the original filing date.
Automatic reinvestment is a financial process by which dividends or capital gains distributions from investments are automatically used to purchase more of the same or additional types of securities.
The automatic stay is a provision in U.S. bankruptcy law that halts all collection activities, including litigation, repossessions, and foreclosures, immediately upon filing a bankruptcy petition.
A mutual fund program that allows shareholders to receive a fixed payment each month or each quarter. The payment comes from dividends, including short-term capital gains, and income on securities held by the fund. Long-term capital gains are distributed annually when realized.
Automation refers to the process of operating devices or systems using automatic techniques, which may involve mechanical, electronic, or robotic methods.
Automobile liability insurance provides coverage for bodily injury or property damage for which the insured is legally liable due to an automobile accident. It is a fundamental aspect of auto insurance policies, ensuring financial responsibility for harm caused to others.
A personal automobile policy (PAP) provides comprehensive car insurance with multiple coverages, designed to replace the earlier Family Automobile Policy (FAP). It offers a wide range of protections including liability, medical payments, uninsured motorist coverage, comprehensive, collision, and several optional coverages.
Available hours refer to the total number of hours that can be allocated to complete a job, task, or process within an accounting period, expressed in terms of machine hours, direct labor hours, or production hours.
A guarantee of payment by a third party, often a bank, on a bill of exchange or promissory note, ensuring the instrument is honored.
An avatar is an image or representation of a computer user in an online forum, chat room, virtual reality program or game. Avatars range from simple, abstract images to complex, personalized, three-dimensional models.
AVCO stands for Average Cost Method, an inventory valuation method applied to calculate the cost of goods sold and end inventory by averaging the cost of all items available for sale during the period.
The term 'average' commonly refers to the arithmetic mean, which is a measure of central tendency. In finance, it refers to an appropriately weighted and adjusted arithmetic mean of selected securities designed to represent market behavior.
The Average Daily Balance is a method commonly employed by banks to compute interest charges, such as on credit card balances, when issuing monthly statements. It involves summing the amount owed on each day of the month and dividing by the number of days in the month.
The Average Collection Period is a key financial metric that measures the average number of days a company takes to collect payments from its credit customers.
Average Cost (also known as Weighted-Average Cost) is a method of determining the cost per unit by dividing total costs by the total output. This method includes recalculating the unit value for raw materials or finished goods after each new consignment.
The Average Cost Curve (ACC) in the long run represents the average cost per unit of output, taking into account the optimal production technology and scale. It is crucial for understanding economies of scale and business optimization.
A graphical depiction of the average cost per unit to produce a product for a given level of output based on current technology and scale employed by existing firms.
Average costing, also known as weighted average costing, is a method of cost accounting that assigns an average cost to each unit of production when items have a high degree of similarity. It is useful for inventory management and financial reporting.
A strategic investment approach where an investor lowers the average price paid for a company's shares by purchasing additional shares as the price decreases.
Average Fixed Cost (AFC) is a cost metric in economics that measures the fixed costs on a per-unit basis. It is calculated by dividing the total fixed costs by the number of units produced.
Average Fixed Cost (AFC) is a financial metric in economics which is calculated by taking the total fixed costs (TFC) of production and dividing them by the total output (Q) produced. AFC helps in understanding how fixed costs are spread across units produced, giving insights into the cost structure of production.
An accounting term referring to a calculated measure used to compare bonds of varying durations and repayment schedules by averaging the periods for which funds are available, weighted by the amounts available in each period.
Average Revenue is the amount of money received by a firm per unit of output sold. It is calculated by dividing the total revenue by the quantity of goods sold.
The average tax rate is calculated by dividing total taxes paid by total income. It indicates the amount of tax paid per dollar earned, serving as a key measure in understanding overall tax burden.
Avoidable costs are expenses that can be eliminated if a particular decision or course of action is taken, such as ceasing production of a specific product. They are crucial in determining the financial impact of business decisions.
Avoidance of tax refers to legal strategies and methods by which a taxpayer reduces their tax liability, often through investing in tax shelters or utilizing other deduced deductions and credits allowed by tax law.
Avoiding probate involves using various estate planning techniques to eliminate assets from the legal probate process. Methods include jointly held property, living trusts, and lifetime gifting. It's important to note that avoiding probate does not exempt assets from federal estate or gift taxes.
Avoirdupois is a measure of weight customarily used for agricultural products and nonprecious metals. An avoirdupois ounce is lighter than a troy ounce; there are 16 ounces in an avoirdupois pound.
Avulsion refers to the sudden removal of land from one parcel to another, typically caused by the abrupt change of a watercourse such as a river.
A legal defense in which a senior executive claims ignorance of fraudulent or otherwise unlawful practices within their company. Famously coined during the 2005 trial of Bernie Ebbers, founder of WorldCom.
Awards are formal recognitions given to individuals or entities for achieving excellence in a specific field or meeting certain predefined criteria. These recognitions can be in the form of trophies, medals, certificates, or other tangible items that symbolize achievements.
Away from home refers to scenarios where sleeping arrangements are necessary for at least one night before returning home, allowing for the deduction of 'ordinary and necessary' travel expenses on a business trip.
The phrase 'axe to grind' denotes a personal interest or hidden agenda. It implies leveraging others, often without their full awareness, to fulfill personal objectives.
In the USA, B shares are a category of less important ordinary shares that are typically distinguished from A shares by their limited voting power.
B/D is an accounting abbreviation that stands for 'Brought Down.' It is used to indicate the balance of an account from the previous page or period is being carried forward to the current page or period in a ledger or financial statement.
B/F, an abbreviation for 'brought forward,' refers to an accounting practice where balances from a previous period are carried over to the current period, ensuring continuity in financial reporting. This term is crucial for maintaining accurate financial records year-over-year or across accounting periods.
B2B is an abbreviation for business-to-business, referring to transactions or business conducted between two or more commercial organizations. These exchanges often occur via the Internet and encompass a wide range of industries and services.
B2C Internet Marketing involves direct interactions and transactions between businesses and consumers through online platforms, exemplified by companies like Amazon.com.
One of the regional telephone companies spun off in 1981 by the Justice Department's breakup of American Telephone and Telegraph (AT&T). Many of these Baby Bells have since reconsolidated.
Baby bonds are low-denomination bonds that make it easier for small investors to participate in the bond market. They are generally worth $5,000 or less and were originally coined to make investing more accessible.
Individuals born during the post-World War II years represent a sizable and influential portion of the consuming public, significantly affecting economic trends.
A Bachelor of Business Administration (BBA) is a four-year degree program that equips students with comprehensive knowledge of business principles, ethics, and practices. The program encompasses a variety of business-related disciplines and offers specializations in areas such as accounting, finance, marketing, management, business statistics, and real estate.
Back duty refers to an amount of tax that should have been paid in previous years but was not due to the taxpayer’s failure to disclose full income details to HM Revenue. An inspection and enquiry process reveals these unpaid taxes, often attracting interest and penalties.
A back haul refers to the shipper's movement when returning over a route previously used, often optimizing logistical efficiency by having cargo for both legs of the journey.
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.
Back pay refers to compensation owed to an employee for work performed in a previous pay period, typically resulting from payroll errors, disputes, or legal settlements.
