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

Positive confirmation

Accounting; Auditing

The positive form of receivables confirmation asks the customer to respond whether the customer agrees or disagrees with the client's reported receivable balance. The negative form of accounts ...

Predecessor auditor

Accounting; Auditing

The auditor of a client for a prior year who no longer audits that client.

Presentation

Accounting; Auditing

Assertions about presentation deal with whether particular financial statement components are properly classified and described. For example, management asserts that long-term liabilities in the ...

Principal auditor

Accounting; Auditing

The auditor responsible for the greater portion of financial statements. The principal auditor may assume responsibility for the work of the other auditor or divide responsibility with the other ...

Pro forma

Accounting; Auditing

The objective of pro forma financial information is to show effects on historical financial information as if a proposed event had occurred earlier.

Proportional to size (pps) sampling A sampling plan that bases the likelihood of selecting a particular account on the relative size of that account, so larger accounts have a greater probability of ...