Definiton of an Audit, Audit Reports, Audit Trails and Cooking the Books

Audit



An audit is an objective and unbiased examination of all the financial statements of an organization or business. It can be done internally or externally: by the government or an accounting firm.

The objective of an audit is to render an opinion of the fairness and truthfulness of the businesses’ financial statements. Audited financial statements are the tool with which businesses and corporations use to report to their shareholders, the bank, any creditors and the government. Legislation in Canada states that a limited company (LLC corporations) must provide annual financial statements for audit by auditors. Financial statements are the responsibility of the management. The auditors’ responsibility is to decipher and state the facts about the financial statements. The auditors audit in order to obtain assurance that financial statements are free of any mistruths or inaccuracies.

The audit is: evaluation of the company’s system of financial control, the inspection of financial documents, observation of the assets, and enquires within and outside the company. The auditors will gather financial evidence in order to determine whether the financial statements present a fair picture of the company’s financial position and its activity during the time period being audited.

Audit Report



An audit report is the written result of the audit. The report is important because it is what the accounting department and senior management reads. If written well, it can act as a tool to prompt management to take any corrective financial action.

Audit Trail



An audit trail is a detailed record by which all accounting data can be traced to its original source. The Securities Commission and other securities entities will use an audit trail for the reconstruction of trades if there is any questionable accuracy of the financial statements or accounting practices.

Cooking the Books



Cooking the books is an industry term meaning fraudulent and dishonest accounting. Cooking the books is when corporations falsify financial statements. Cooking the books usually involves adjusting financial data to show non-existent earnings or paying non-existing staff.

Tips for a successful audit:

1. Preparation- keep books up to date by a professional

2. Get a tax attorney

3. Schedule the audit in the off season- in order to spend time with the auditors

  Home
  
  Adjustable Rate Mortgages
  Agflation
  Alliance Bank
  Annuity
  ANZ Bank
  Associated Bank
  Audit
  Austerity
  Bad Credit Mortgage
  Bad Debt
  Bank of America
  Bank of Colorado
  Bank of Montreal
  Bank of Oklahoma
  Bank of Scotland
  Bank of Texas
  Bank of the West
  BankAtlantic
  Bankruptcy
  Banks In The USA
  Barclays Bank
  BBVA Compass
  BestBank
  Black Friday
  BMO Bank of Montreal
  BNP Paribas
  Bonds
  Branch Banking and Trust
  British Bankers Association
  Bull and Bear Markets
  Cambridge Savings Bank
  Canada Pension Plan
  Canadian Tire Bank
  Canadian Western Bank
  Capital
  Capital Bank
  Cash Advance
  Chase Bank
  CIBC Canadian Imperial Bank of Commerce
  Citibank
  Citizens Bank
  Citizens Bank of Canada
  City National Bank
  Co-operative Bank
  Coast Capital Savings Credit Union
  Comerica Bank
  Commodity
  Commonwealth Bank
  Conexus Credit Union
  CONTACT
  Credit Card Advice
  Credit Counseling
  Credit Report
  Credit Unions
  Currency
  Day Trading
  Deficit
  Defined Benefit Pension
  Defined Contribution Pensions
  Depreciation
  Direct Deposit Advance
  Downsizing
  Entrepreneur
  Envision Credit Union
  Equity
  Fedwire Routing Number
  FHA Loans
  Fiat Money
  First Federal Bank of Florida
  First Niagara Bank
  First Republic Bank
  First Tennessee Bank
  FirstBank
  Fixed Rate Mortgages
  Forex Trading
  Frost Bank
  Glens Falls National Bank
  Globalization
  Glocalism
  Gold
  Government and Mortgages
  Grants
  Gross Domestic Product or GDP
  Halifax
  Harris Bank
  HDFC Bank
  Hedge Funds
  Home Appraisals
  Home Equity Loans
  Home Equity Rates
  Home Foreclosure
  HSBC Canada
  Hudson City Bank
  Identity Theft
  Inflation
  ING Direct
  Interest-only loan
  IPO
  Kennebunk Savings Bank
  KeyBank
  Lien
  Life Insurance
  Links Resources and Partners
  Lloyds TSB
  Market Share
  MasterCard
  Meridian Credit Union
  MI Bank
  Micro Credit
  Money by Pink Floyd
  Money Converter
  Money Market
  Money Mart
  Money Scams
  Mortgage Loan
  Mortgage Refinancing
  Mutual Fund
  MutualBank
  National Australia Bank
  National Bank of Canada
  Navy Federal Credit Union
  Navy Federal Credit Union Online Banking
  Navy Federal Credit Union Routing Number
  Navy Federal Credit Union Web Bill Pay
  Offshore banking
  Old Age Security Program
  One For The Money Movie 2012
  OneWest Bank
  Orange County Teachers Credit Union
  Oxford Bank and Trust
  Payday Loans
  Pentagon Federal Credit Union
  Peoples United Bank
  Personal Finance Software
  PNC Bank
  Provident Bank
  RBC Royal Bank
  Recession
  Refund Anticipation Loan
  Regions Financial Corporation
  REIT or Real Estate Investment Trust
  Reverse Mortgages
  Rich Dad, Poor Dad
  Scotiabank
  Second Mortgages
  Servus Credit Union
  Silver
  Sovereign Bank
  Standard Bank
  Steinbach Credit Union
  Stock Market
  Student Financial Aid
  SunTrust Bank
  SunTrust Routing Number
  Taxes
  TCF Bank
  TD Canada Trust
  TD Canada Trust Routing Number
  The Federal Reserve
  The Gold Standard
  The Wealthy Barber
  Union Bank
  US Public Debt
  Vancity Credit Union
  Venture Capital
  Wealth Coaching
  Wells Fargo
  Wells Fargo Routing Number
  Woodforest National Bank
  Zions Bank