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

Scope paragraph

Accounting; Auditing

The paragraph in the audit report that explains the scope of the engagement. The wording of the standard scope paragraph is: "We conducted our audit in accordance with U.S. generally accepted ...

Making inferences in uncertain situations using applied mathematics. Measurements from a small group, the sample, are used to infer the behaviour of a larger group, the population. Probability theory ...

Second request

Accounting; Auditing

When an auditor confirms receivables, some customers of the client fail to respond to the first confirmation request. Another request sent to the same customers is the second request.

Stop-or-go sampling

Accounting; Auditing

Taking a sample from a population and checking after each sample item is drawn whether the sample supports a desired conclusion. Sampling ceases as soon as that conclusion is supported.

Secured transaction

Accounting; Auditing

Right to repossess goods as security for payment of a debt.

Stratify

Accounting; Auditing

To arrange a population or a sample in distinct layers. Stratified sampling is used in auditing to select a greater percentage of accounts with high balances than of accounts with low balances.

Subject to

Accounting; Auditing

Years ago there was a type of qualified audit opinion that was worded "In our opinion, subject to....." Auditors are no longer permitted to issue such opinions.