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

Variable sampling

Accounting; Auditing

The characteristic tested has many possible values (such as dollar value of inventory).

Consistency

Accounting; Auditing

To achieve comparability of information over time, the same accounting methods must be followed. If accounting methods are changed from period to period, the effects must be disclosed.

Variance

Accounting; Auditing

A statistical measure of dispersion in a population. The variance is the square of the standard deviation. The standard deviation equals the square root of the arithmetic mean of the squares of ...

Vendors

Accounting; Auditing

Provide goods or services to an audited entity. Also called suppliers.

Consulting services

Accounting; Auditing

Performed by CPAs include consultations, advisory services, implementation services, product services, transaction services, and staff and support services.

Users evaluate accounting information by comparison. Similar companies account for similar transactions in similar ways. Another goal is comparison of one company's information from one period to the ...

Contingency

Accounting; Auditing

Is an existing condition involving uncertainty as to possible gain (gain contingency) or loss (loss contingency) that will be resolved by future events. Estimates, such as the useful life of an ...