Auditing

Auditing

The systematic review and examination of an individual's or organization’s accounting records to verify their accuracy.

Industry: Accounting

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Auditing

Test data

Accounting; Auditing

Is run through a computer programme to test the software. Test data can be used to test compliance with controls in the software.

(tests of the operating effectiveness of internal controls) Auditors evaluate the design of controls, then determine if the controls are in operation. In order to rely on the controls they must also ...

Test of detail

Accounting; Auditing

Direct tests of financial statement balances (substantive audit procedures) that are not analytical procedures. If tests of details are performed as tests of controls as well as substantive tests ...

Tick marks

Accounting; Auditing

In audit work papers are footnotes represented by a symbol instead of by a number. They indicate procedures that have been carried out on specific items in the work papers.

Times interest earned

Accounting; Auditing

Income before interest and taxes divided by interest expense.

Tolerable deviation rate

Accounting; Auditing

The maximum rate of deviation from an internal control that will allow the auditor to place the planned reliance on that control.

Tolerable misstatement

Accounting; Auditing

When planning a sample for a substantive test of details, the auditor considers how much monetary misstatement may exist without causing the financial statements to be materially misstated. This ...