An obligation to give an account. In the context of limited companies, it's assumed that the directors are accountable to the shareholders, fulfilled partially through annual reports and accounts.
An accounting error is an inaccurate measurement or representation of an accounting-related item not caused by intentional fraud. Errors can stem from negligence or the misapplication of Generally Accepted Accounting Principles (GAAP). These errors may manifest as dollar discrepancies or compliance issues in employing accounting policies and procedures.
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.
A clean opinion, also known as an unqualified opinion, is an auditor's verdict that a company's financial statements are accurate and comply with Generally Accepted Accounting Principles (GAAP).
A committee is a group of people appointed for a specific function or task, usually with the goal of making decisions or recommendations. Committees exist in various contexts, such as corporate, governmental, academic, and nonprofit organizations.
Corporate governance refers to the system by which companies are directed and controlled, focusing on the structure and relationships that determine corporate performance and accountability.
A code of best practice in corporate governance that outlines expected standards for UK's listed companies, originally issued with the Hampel Report of 1998.
Free riders are individuals within a team or organization who benefit from collective efforts without contributing adequately due to the absence of individual responsibility requirements.
The Government Accountability Office (GAO) is an independent agency that provides auditing, evaluation, and investigative services for the United States Congress.
The International Accounting Standards Board (IASB) is the independent, private sector body that develops and approves International Financial Reporting Standards (IFRS). The IASB was formed to achieve transparency, accountability, and efficiency in financial markets around the world through consistent and high-quality accounting standards.
The IFRS Foundation is a not-for-profit organization responsible for the development and oversight of the International Financial Reporting Standards (IFRS). These standards provide a common global language for financial reporting, ensuring transparency, accountability, and efficiency in financial markets worldwide.
International Financial Reporting Standards (IFRS) are a set of accounting rules that standardize how businesses report their financial outcomes globally, ensuring transparency, accountability, and efficiency in financial markets.
Liable means being legally responsible or obligated for something. It often relates to situations where a person or entity is required to uphold their part of a legal duty or may be subjected to penalties if they fail to do so.
An organizational structure where direct line functions contribute to the organization's output. This setup ensures clear lines of authority, accountability, and streamlined decision-making, focusing on direct communication from top management to entry-level employees.
Participative budgeting is a budgeting process where various levels of management are involved in setting the budget. This method aims to boost ownership and accountability, ensuring that performance benchmarks reflect the input of those who are responsible for meeting them.
A Public Interest Entity (PIE) is an organization that operates under the scrutiny of the public eye due to its size, importance, or influence in the marketplace. These entities often include publicly traded companies, banks, insurance companies, and other financially significant institutions.
A Standard of Care outlines the level of competence, diligence, and adherence to best practices that are expected of a professional in their field. It is a crucial component ensuring accountability and quality in professional services.
The Statutory Audit Directive, adopted by the European Union in 2006, aims to strengthen public confidence in the auditing profession by increasing transparency, accountability, and compliance with stringent auditing standards.
Stewardship is a traditional approach in accounting that emphasizes the duty of stewards or agents, such as company directors, to provide accurate and reliable financial information concerning resources they control but do not own, usually for the proprietors or shareholders.
State or federal laws, also known as government in the sunshine laws, require most meetings of regulatory bodies to be held in public and most of their decisions and records to be disclosed.
Tracing mail refers to the process of tracking the journey and delivery status of a sent email or postal mail. This is a critical feature for ensuring communication reliability and accountability.
