financial audit
Books under scrutiny
A financial audit is a formal examination of an organization's financial records and statements by an independent party, typically a certified public accountant.
The auditor verifies that the accounts accurately represent the organization's financial position and comply with accounting standards.
Companies may be required by law to undergo annual audits, and the auditor's opinion—clean, qualified, or adverse—carries significant weight with investors and regulators: The firm received an unqualified audit opinion.
Proving something accurate
- inspectionFormal assessment of condition
- reviewCritical written assessment
- assessmentFormal evaluation of worth
- analysisMethodical study of parts
investigation · vouching · substantiation · cross-checking · sampling · testing · inquiry · confirmation
Showing extreme attention to detail
- comprehensiveIncluding all elements
- systematicFollowing ordered procedures
- thoroughComplete in every detail
- detailedFull of specifics
methodical · exhaustive · precise · accurate · scrupulous · diligent · in-depth · analytical
Assets-liabilities-equity report
- ledgerFinancial record book
- bookkeepingRecording financial transactions systematically
- general ledgerMaster accounting record
- trial balanceBookkeeping accuracy test
journal entry · double-entry · accounts receivable · accounts payable · accrual · depreciation · fiscal year · revenue
State of being see-through
- accountabilityObligation for one's actions
- objectivityFreedom from personal bias
- impartialityFreedom from prejudice
- independenceFreedom from external control
ethics · reliability · good faith · arm's length · conflict of interest · rotation · confidentiality
Financial reporting conventions
- Sarbanes-OxleyCorporate governance reform law
- SECStock market regulator
- regulationsEnforced rules and standards
- standardsAccepted levels of quality
governance · fiduciary · accreditation · certification · regulatory · conformity · policies · procedures
verification
Proving something accurate
- inspectionFormal assessment of condition
- reviewCritical written assessment
- assessmentFormal evaluation of worth
analysis · investigation · vouching · substantiation · cross-checking · sampling · testing · inquiry · confirmation · walkthrough
meticulous
Showing extreme attention to detail
- comprehensiveIncluding all elements
- systematicFollowing ordered procedures
- thoroughComplete in every detail
detailed · methodical · exhaustive · precise · accurate · scrupulous · diligent · in-depth · analytical · documentation
balance sheet
Assets-liabilities-equity report
- ledgerFinancial record book
- bookkeepingRecording financial transactions systematically
- general ledgerMaster accounting record
trial balance · journal entry · double-entry · accounts receivable · accounts payable · accrual · depreciation · fiscal year · revenue · expenses
transparency
State of being see-through
- accountabilityObligation for one's actions
- objectivityFreedom from personal bias
- impartialityFreedom from prejudice
independence · ethics · reliability · good faith · arm's length · conflict of interest · rotation · confidentiality
GAAP
Financial reporting conventions
- Sarbanes-OxleyCorporate governance reform law
- SECStock market regulator
- regulationsEnforced rules and standards
standards · governance · fiduciary · accreditation · certification · regulatory · conformity · policies · procedures · adherence
- reportsdaily report, weekly report, monthly report, progress report, final report
- audits
- business reportsannual report, quarterly report, sales report, expense report, progress report
- oversightoversight committees, oversight board, review, auditors, supervisor
- municipal financemunicipal bonds, municipal budgets, bond issue, city budgets, city budget
- investigationinvestigation, detective, evidence, clue, case
financial auditquick look
Brief visual inspection
rubber stamp · skim · once-over · spot check · glossing over
financial auditfinancial fraud
Illegal monetary deception
accounting fraud · cooking the books · embezzlement · creative accounting · money laundering
finance, finances, financial, audit, financing, auditor, financier, financially, financiers