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Topic of the Day: Audit
Accountant
Bookkeeping
Trial balance
General ledger
Debits and credits
Cost of goods sold
Double-entry system
Standard practices
Cash and accrual basis
GAAP / IFRS The general definition of an audit is an evaluation of a person, organization, system, process, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person/organization/system (etc) in question, under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free of material misstatements - a concept influenced by both quantitative and qualitative factors. Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business (see financial audit). However, recent auditing has begun to include other information about the system, such as information about environmental performance. As a result, there are now professions conducting environmental audits. In financial accounting, an audit is an independent assessment of the fairness by which a company's financial statements are presented by its management. It is performed by competent, independent and objective person(s) known as auditors or accountants, who then issue an auditor's report based on the results of the audit.
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| Anne's Column |
Welcome to Financiology.com
(07/16/2007)
What on earth is Financiology? Is it... - smart money management?
- a branch of economics dealing with finance?
- the art of keeping your financial house in order?
- the science of leading the lifestyle you want without being able to actually afford it?
- aspiritual sect which worships money?
Maybe it is a little bit of everything, or rather, it is whatever you want it to be. As long as money makes the world go 'round we will have to deal with finance in all the different ways it touches our lives. Making money, investing it, borrowing and spending it. Financial freedom is probably way up on our list of important goals, and Financiology is here to gather all finance related intelligence in one place to help you achieve this goal. Find expert advice and information on a wide array of financial topics, from A as in Auto Loans to Z as in Zero Down. Chances are you'll find an article that offers valuable (and FREE!) tips and advice on almost any finance subject imaginable. Got expertise in any area related to financiology? Submit an article to our information directory and share it with the world. All of us here at financiology.com sincerely hope you will find this resource helpful in all your financial endeavours. To your wealth, Anne
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