Auditor Flashcards – Full Dictionary

A complete list of financial and audit-related vocabulary terms and their definitions as presented in the lecture notes.

Financial Statement

A report showing financial information.

Balance Sheet

Statement of assets, liabilities and equity.

Statement of Financial Position

Statement of assets, liabilities and equity.

Income Statement

Report of revenue and expenses.

Profit and Loss Statement

Report of profit or loss.

Cash Flow Statement

Report of cash inflows and outflows.

Statement of Changes in Equity

Report of equity movements.

Notes

Additional disclosures.

Asset

Resource owned by a company.

Current Asset

Asset expected to be used within one year.

Non-current Asset

Long-term asset.

Cash

Money available immediately.

Cash Equivalent

Short-term liquid investment.

Inventory

Goods held for sale.

Raw Materials

Materials used in production.

Finished Goods

Completed products.

Accounts Receivable

Amounts owed by customers.

Trade Receivable

Customer debt.

Accounts Payable

Amounts owed to suppliers.

Trade Payable

Supplier debt.

Property

Land or buildings.

Equipment

Machines and tools.

Investment

Asset held for return.

Intangible Asset

Non-physical asset.

Goodwill

Premium paid in acquisition.

Patent

Legal right to an invention.

Trademark

Protected brand name.

Liability

Debt or obligation.

Current Liability

Debt due within one year.

Non-current Liability

Long-term obligation.

Loan

Borrowed money.

Debt

Money owed.

Interest

Cost of borrowing.

Provision

Estimated obligation.

Accrued Expense

Expense recognized but unpaid.

Equity

Ownership interest.

Share Capital

Capital invested by owners.

Retained Earnings

Accumulated profits.

Revenue

Income from business activity.

Sales

Revenue from selling.

Expense

Cost incurred.

Cost

Amount spent.

Gross Profit

Revenue minus cost of sales.

Operating Profit

Profit from operations.

Net Profit

Final profit.

Loss

Negative result.

Salary

Employee compensation.

Wages

Employee pay.

Rent

Payment for use of property.

Tax

Mandatory government payment.

Income Tax

Tax on profit.

VAT

Value Added Tax.

Depreciation

Allocation of asset cost.

Amortization

Allocation of intangible asset cost.

Audit

Independent examination of FS.

Auditor

Person performing audit.

Audit Evidence

Information supporting conclusions.

Documentation

Recorded audit work.

Working Papers

Audit working documents.

Materiality

Importance of misstatement.

Risk

Possibility of error.

Audit Risk

Risk of wrong opinion.

Control Risk

Risk controls fail.

Detection Risk

Risk auditor misses issue.

Inherent Risk

Natural risk before controls.

Fraud

Intentional deception.

Error

Unintentional mistake.

Misstatement

Incorrect information.

Material Misstatement

Significant error.

Internal Control

System preventing errors.

Assessment

Evaluation.

Procedure

Audit step.

Sampling

Testing a subset.

Inspection

Examination of records.

Confirmation

Obtaining evidence from third parties.

Recalculation

Checking calculations.

Observation

Watching a process.

Inquiry

Requesting information.

Analytical Procedures

Analysis of relationships.

Opinion

Auditor conclusion.

Unqualified Opinion

Clean opinion.

Qualified Opinion

Opinion with exceptions.

Adverse Opinion

Negative opinion.

Disclaimer of Opinion

No opinion expressed.

Accounting

Recording transactions.

Accountant

Accounting specialist.

Ledger

Accounting record book.

General Ledger

Main accounting ledger.

Journal

Book of entries.

Journal Entry

Accounting posting.

Transaction

Business event.

Recognition

Recording in FS.

Measurement

Determining value.

Disclosure

Providing information.

Fair Value

Market-based value.

Impairment

Reduction in value.

IFRS

International Financial Reporting Standards.

IAS

International Accounting Standards.

Trial Balance

List of balances.

Fiscal Year

Financial year.