Auditing
Of the various specialized areas of accounting that exist, the three most important are auditing, income taxation, and nonbusiness organizations. Auditing is the examination, by an independent accountant, of the financial data, accounting records, business documents, and other pertinent documents of an organization in order to attest to the accuracy of its financial statements. Businesses and not-for-profit organizations in the United States engage certified public accountants (CPAs) to perform audit examinations. Large private and public enterprises sometimes also maintain an internal audit staff to conduct auditlike examinations, including some that are more concerned with operating efficiency and managerial effectiveness than with the accuracy of the accounting data.
The second specialized area of accounting is income taxation. Read about income taxation here
A third area of specialization is accounting for nonbusiness organizations, such as universities, hospitals, churches, trade and professional associations, and government agencies. Read about accounting for nonbusiness organizations here
More Accounting Entries
Accounting information can be classified into two categories: financial accounting or public information and managerial accounting or private information.
Read about Financial Accouting here
Read about Managerial Accouting here
Financial Reporting
Traditionally, the function of financial reporting was to provide proprietors with information about the companies that they owned and operated. Read about financial reporting here
Accounting Principles
Accounting as it exists today may be viewed as a system of assumptions, doctrines, tenets, and conventions, all encompassed by the phrase “generally accepted accounting principles.”Read about accounting principles here
The Balance Sheet
Of the two traditional types of financial statements, the balance sheet relates to an entity’s position, and the income statement relates to its activity. The balance sheet provides information about an organization’s assets, liabilities, and owners’ equity as of a particular date (such as the last day of the accounting or fiscal period). Read about income balance sheet here
The Income Statement
The traditional activity-oriented financial statement issued by business enterprises is the income statement.
Regulations and Standards in the United States
Until 1973, accounting principles in the United States had traditionally been established by certified public accountants. Read about Accounting Regulations and Standards in the United States
Source: “Accounting and Bookkeeping”Microsoft® Encarta® Online Encyclopedia
See Also
Literature Review on Auditing
In the Encyclopedia of Public Administration and Public Policy, [1] Jean Harris and Ann Pushkin provide the following summary about the topic of Auditing: Auditing is fundamental to providing assurance that information is creditable, and creditable information is fundamental for accountability. An audit is an examination. Although there are many types of audits, this explanation is primarily about financial statement and financial-related audits of state and local governments. In these audits, assertions are examined on a test basis, and accounting principles and estimates are assessed. On the basis of the collection and evaluation of evidence, the auditor renders an opinion about the financial statements and, for governments, sometimes issues additional reports. Fair presentation of financial statements is judged relative to established criteria set forth in generally accepted accounting principles (GAAPs). For many governments, additional reports address the adequacy of internal controls and compliance with policies, contractual agreements, grant provisions, regulations, and statutes.
Resources
See Also
- Bookkeeping
- Accounting
- Accounting Ethics
- Public Accountant
- Accounting Principles
Resources
Notes and References
- Entry about Auditing in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)
See Also
Further Reading
- Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)
Hierarchical Display of Auditing
Business And Competition > Accounting > Management accounting
Business And Competition > Management > Management > Audit
Business And Competition > Management > Financial management > Balance-sheet analysis
Finance > Budget > Implementation of the budget > Budgetary control
Finance > Budget > Implementation of the budget > Financial control
Auditing
Concept of Auditing
See the dictionary definition of Auditing.
Characteristics of Auditing
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Resources
Translation of Auditing
- Spanish: Verificación de cuentas
- French: Vérification des comptes
- German: Buchprüfung
- Italian: Verifica dei conti
- Portuguese: Verificação de contas
- Polish: Rewizja ksiąg
Thesaurus of Auditing
Business And Competition > Accounting > Management accounting > Auditing
Business And Competition > Management > Management > Audit > Auditing
Business And Competition > Management > Financial management > Balance-sheet analysis > Auditing
Finance > Budget > Implementation of the budget > Budgetary control > Auditing
Finance > Budget > Implementation of the budget > Financial control > Auditing
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