Dual dating financial statements

21 Feb

Compilation is presenting in the form of financial statements information that is the representation of management (owners) without expressing assurance. accounting data includes journals, ledgers and other records, such as spreadsheets, that support financial statements. accounting estimate An approximation of a financial statement element.

Review is inquiry and analytical procedures to provide the accountant a basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with U. Estimates are included in historical financial statements because some amounts are uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely, cost-effective basis.

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adverse An audit opinion that the financial statements as a whole are not in conformity with U. This differs from attestation, where the CPA expresses a conclusion about a written assertion of another. Aggregate expenses include expenses of all divisions combined for the entire year.

The terms defined on this page have all appeared in past CPA exam questions, so they are worth knowing if you are studying for the auditing exam.

There is no need to memorize each term and its definition verbatim, but you should at least know what each terms means along with the concepts surrounding them.

This allowance is also the difference between the expected error rate and the tolerable deviation rate.

analytical procedure A comparison of financial statement amounts with an auditor’s expectation.