27 Terms
Home > Industry/Domain > Accounting > 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
Just-in-time
Accounting; Auditing
An inventory system that attempts to minimise inventory costs that do not add value for the customer. It arranges for suppliers to deliver small quantities of raw materials just before those units ...
Kiting
Accounting; Auditing
Drawing a bank cheque on insufficient funds to take advantage of the time required for collection.
Lapping
Accounting; Auditing
A scheme to cover an embezzlement by using payments made by one customer to reduce the receivables balance of another customer.
Lead schedule
Accounting; Auditing
The schedule at the beginning of audit documentation that summarises the detailed schedules.
Limit test
Accounting; Auditing
(limit check). A computer programme step that compares data with predetermined limits as a reasonableness test (hours worked over 60 per week).
Liquidity
Accounting; Auditing
The availability of cash or ability to obtain it quickly. Debt paying ability.
Positive assurance
Accounting; Auditing
A statement as to what the CPA believes. An example is an opinion that the financial statements are presented fairly in conformity with U.S. GAAP. The opposite is negative assurance, a statement ...
