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Accounting Institute Seminars, Inc.
Industry: Accounting
Number of terms: 7464
Number of blossaries: 0
Company Profile:
The negative form of accounts receivable confirmation asks the client's customer to respond only if the customer disagrees with the balance determined by the client. The positive form asks the customer to respond whether the customer agrees or disagrees with the client's receivable balance. The negative form is used when controls over receivables are strong and accounts receivable consists of many accounts with small balances. The positive form is used when controls are weak or there are fewer, but larger, accounts.
Industry:Accounting
is audit risk not due to sampling. An auditor may apply a procedure to all transactions or balances and fail to detect a material misstatement. Nonsampling risk includes the possibility of selecting audit procedures that are not appropriate to achieve a specific objective. For example, confirming recorded receivables cannot reveal unrecorded receivables. Nonsampling risk can be reduced to a negligible level through adequate planning and supervision.
Industry:Accounting
objective, is goal, aim at, seeking to, trying to reach
Industry:Accounting
The internal auditors' objectivity depends on the organizational status of the internal audit function, whether the internal auditor has direct access and reports regularly to the board, the audit committee, or owner-manager, and who oversees internal auditor employment decisions.
Industry:Accounting
Assertions about obligations deal with whether liabilities are obligations of the entity at a given date. For example, management asserts that amounts capitalized for leases in the balance sheet represent the cost of the entity's rights to leased property and that the corresponding lease liability represents an obligation of the entity.
Industry:Accounting
To do away with something so as to leave no trace.
Industry:Accounting
(observation) Watch and test a client action (such as taking inventory).
Industry:Accounting
Assertions about occurrence deal with whether recorded transactions have occurred during a given period. For example, management asserts that sales in the income statement represent the exchange of goods or services with customers for cash or other consideration.
Industry:Accounting
Access to a computer for immediate processing without having to wait for a batch of transactions to be processed at a later time.
Industry:Accounting
How an internal control was applied, the consistency with which it was applied, and by whom.
Industry:Accounting