Accounting Tools

APRIL 11, 2024

A traveling auditor is a person who spends a disproportionate amount of time conducting audits in distant locations. The typical auditor works with audit clients that are located within driving distance of his or her home. The auditor can also conduct physical audits of inventory and fixed assets, thereby confirming their existence.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

APRIL 29, 2024

What is a Statutory Audit? A statutory audit is an examination of an entity's financial records in accordance with the requirements of a government agency. A number of organizations must undergo statutory audits, including banks, brokerage firms, insurance companies, and municipalities.

Auditing 40

Auditing Financial Statements Financial Records Bookkeeping 40

Accounting Tools

OCTOBER 21, 2023

Related Courses How to Conduct an Audit Engagement The purpose of an audit is for an independent third party to examine the financial statements of an entity. Related Articles The Difference Between an Audit, a Review, and a Compilation The Difference Between Internal and External Audits

Auditing 75

Auditing Financial Statements Accounting Accounting 75

Accounting Tools

APRIL 18, 2024

The accounting firm that conducts an audit is the owner of the work papers prepared during that audit; they are not the property of the client. Related AccountingTools Courses Guide to Audit Working Papers How to Conduct an Audit Engagement Related Article Audit Working Papers

Financial Records 40

Financial Records Auditing Collections Accounting 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Guide to Audit Sampling Guide to Data Analytics for Audits How to Conduct an Audit Engagement What is Audit Sampling? Audit sampling is the use of an audit procedure on a selection of the items within an account balance or class of transactions.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

MAY 2, 2024

What is a Social Audit? A social audit is an examination of the activities of a business that support the public interest. A social audit can also include the environmental impact of a business, such as any negative effects on groundwater pollution or air pollution, or the level of energy use. Enhanced customer loyalty.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MARCH 22, 2024

An except-for opinion is rendered by an external auditor when unable to audit parts of a client's operations. The issue arises when management imposes restrictions or when other conditions occur that make it impossible to engage in certain auditing procedures. What is an Except-for Opinion?

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

AUGUST 1, 2023

Related Courses How to Conduct an Audit Engagement How to Conduct a Compilation Engagement How to Conduct a Review Engagement What are Financial Statement Assertions? The assertions form a theoretical basis from which external auditors develop a set of audit procedures.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

JULY 30, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What are Audit Procedures? The exact procedures used will vary by client, depending on the nature of the business and the audit assertions that the auditors want to prove.

Auditing 75

Auditing Financial Statements Invoicing Accounting 75

Accounting Tools

MAY 4, 2024

Related AccountingTools Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model Related Articles Allowance for Sampling Risk Attribute Sampling Block Sampling Discovery Sampling Haphazard Sampling Sequential Sampling

Auditing 40

Auditing Financial Statements 40

Accounting Tools

MAY 10, 2024

Related AccountingTools Courses Guide to Audit Sampling Guide to Auditor Legal Liability How to Conduct an Audit Engagement Related Article Risk of Material Misstatement

Financial Statements 40

Financial Statements Auditing Collections Accounting 40

Accounting Tools

MARCH 22, 2024

What is Audit Risk? Audit risk is the risk that an auditor will not detect errors or fraud while examining the financial statements of a client. Auditors can increase the number of audit procedures in order to reduce the level of audit risk.

Auditing 40

Auditing Financial Statements 40

Accounting Tools

APRIL 14, 2024

By engaging in this evaluation, an auditor can determine the extent of other tests that must be performed in order to arrive at an opinion regarding the fairness of the entity's financial statements. A robust system of internal controls reduces the risk of fraudulent activity, which moderates the need for additional audit procedures.

Auditing 40

Auditing Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 6, 2023

Related Courses How to Conduct an Audit Engagement What is a Disclaimer of Opinion? For example, the auditor may not have been allowed or been able to complete all planned audit procedures. Related Articles Adverse Opinion Except-for Opinion Piecemeal Opinion Qualified Opinion Unqualified Opinion

Financial Statements 75

Financial Statements Auditing 75

Accounting Tools

OCTOBER 10, 2023

Related Courses How to Conduct an Audit Engagement What is a Special Audit? A special audit is a tightly-defined audit that only looks at a specific area of an organization's activities. This type of audit may be initiated by a government agency, but could be authorized by any entity, or even internally.

Auditing 40

Auditing Tax 40

Accounting Tools

SEPTEMBER 29, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is Auditability? Auditability refers to the ability of an auditor to achieve a comprehensive examination of the financial records and financial statements of a client.

Auditing 40

Auditing Financial Records Financial Statements 40

Accounting Tools

JULY 16, 2023

Related Courses Forensic Analytics Guide to Analytical Procedures Guide to Audit Sampling Guide to Data Analytics for Audits How to Conduct an Audit Engagement What are Analytical Procedures? Analytical procedures are a type of evidence used during an audit.

Auditing 75

Auditing Financial Records Accounts Payable Accounts Payable 75

Accounting Tools

JANUARY 9, 2024

What are Government Auditing Standards? Government auditing standards are used to conduct financial audits and performance audits of government entities and entities that receive government awards. Performance audits are used to measure the performance of a project or program against previously defined objectives.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

APRIL 16, 2024

Alternatively, one might engage in business practices to enhance financial results that are technically legal, but which will have a negative impact on the business over the long term. Related Articles Big Bath Creative Accounting Earnings Management Income Smoothing Managed Earnings Several ways to cook the books are noted below.

Auditing 74

Auditing Invoicing Accounting Accounting 74

Accounting Tools

MARCH 26, 2024

Related AccountingTools Courses Guide to Audit Working Papers How to Conduct an Audit Engagement Related Articles Audit Procedures Concurrent Audit Techniques Substantive Procedures Top-Down Approach to Auditing

Auditing 40

Auditing 40

Accounting Tools

MAY 21, 2023

Related Courses How to Audit Cash How to Audit Fixed Assets How to Audit Inventory How to Audit Receivables How to Conduct an Audit Engagement What are Management Assertions? The auditors test the validity of these assertions by conducting a number of audit tests.

Auditing 75

Auditing Financial Statements General Ledger Accounting 75

Accounting Tools

SEPTEMBER 20, 2023

Related Courses How to Conduct an Audit Engagement What is a Limited Audit? A limited audit has a more restricted scope than a full audit. In this type of audit, the audit team confines its operations to certain audit procedures , or only examines certain functional areas of an organization.

Auditing 40

Auditing 40

Accounting Tools

AUGUST 29, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is an Interim Audit? An interim audit involves preliminary audit work that is conducted prior to the fiscal year-end of a client.

Auditing 40

Auditing Financial Statements 40

Accounting Tools

DECEMBER 12, 2023

What is the Audit Process? The audit process is the series of steps followed by an auditor in order to conduct an audit engagement with a client. The exact steps followed will depend on the nature of the audit engagement, but typically follow the general steps noted below.

Auditing 40

Auditing 40

Accounting Tools

DECEMBER 18, 2023

What is Audit Failure? An audit failure occurs when an auditor deviates from the applicable professional standards in such a way that the opinion contained in his or her audit report is false. Independence Issues A particularly concerning cause of audit failures arises when the auditor is not independent of the client.

Auditing 40

Auditing Financial Statements Accounting Accounting 40

Accounting Tools

JULY 14, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is an Adverse Opinion? Related Articles Auditor’s Opinion Disclaimer of Opinion Opinion Shopping Piecemeal Opinion Qualified Opinion Unqualified Opinion

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

SEPTEMBER 29, 2023

Related Courses How to Conduct an Audit Engagement What is an Audit Plan? An audit plan states the overall strategy and detailed steps to be followed in the conduct of an audit. Furthermore, an audit plan helps to maintain control over the costs incurred by the audit team.

Auditing 40

Auditing 40

Accounting Tools

JUNE 12, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Financial Statement Audit? A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Accounting Tools

JULY 24, 2023

Related Courses Fraud Schemes Fraud Examination Guidebook How to Audit for Fraud What is Off the Books? This approach is also used when engaged in illegal transactions. Related Articles Examples of Corporate Fraud Sham Sale Skimming Tax Fraud

Payroll 75

Payroll Auditing Tax Accounting 75

Accounting Tools

SEPTEMBER 18, 2023

Related Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model What is Nonsampling Risk? Nonsampling risk includes all audit risks other than sampling risk. Related Articles Detection Risk Engagement Risk Planned Detection Risk Sampling Risk

Auditing 40

Auditing 40

Accounting Tools

SEPTEMBER 29, 2023

Related Courses How to Conduct an Audit Engagement What is the Audit Cycle? The audit cycle is the period of time during which auditors may engage in auditing activities as part of their audit of a client’s financial statements.

Auditing 40

Auditing Financial Statements Collections Accounting 40

Accounting Tools

JUNE 14, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Financial Statement Review? A review does not require the accountant to obtain an understanding of internal control , or to assess fraud risk , or other types of audit procedures.

Financial Statements 75

Financial Statements Auditing Accruals Financial Reporting 75

Accounting Tools

SEPTEMBER 22, 2023

Related Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model What is Planned Detection Risk? Planned detection risk is the risk that audit evidence will fail to detect misstatements that exceed a tolerable amount.

Auditing 40

Auditing Collections 40

Accounting Tools

JUNE 20, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is an Audit Engagement? An audit engagement is an arrangement that an auditor has with a client to perform an audit of the client's accounting records and financial statements.

Auditing 40

Auditing Financial Statements Accounting Accounting 40

Accounting Tools

DECEMBER 10, 2023

What is a Group Audit? A group audit involves the audit of group financial statements. These types of audits are needed because larger corporations frequently operate through a cluster of legal entities, all of which must be consolidated. A group audit is conducted by the auditor of the parent company.

Auditing 40

Auditing Financial Statements Budgeting Accounting 40

Accounting Tools

APRIL 24, 2024

Related AccountingTools Courses Fraud Examination Fraud Schemes How to Audit for Fraud Optimal Accounting for Cash Intercept at Cashier The cashier can remove cash and simply not record the associated transaction in the accounting records. Related Articles Altered Check Bad Check Raised Check

Petty cash 74

Petty cash Deposits Auditing Billing 74

Accounting Tools

SEPTEMBER 11, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Review in Accounting? A review is a reduced form of an audit that provides a reduced level of assurance regarding an entity's financial statements.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40