Financial System Audit Instance

A Financial System Audit Instance is an audit instance of a financial audit task (that is an accountant-reviewed examination of an organization's financial statements to ensure assets and debts reported are accurate and in compliance with the local laws and regulations).

• AKA: Financial Statements Audit.
• Context:
  • It can be associated with a Financial System Compliance Report (a compliance report).
  • …
• Example(s):
  • a Financial Audit Task, instantiated in a financial audit instance (such as the one for Enron for fiscal year of 2000).
  • …
• Counter-Example(s):
  • Academic Audit,
  • Clinical Audit,
  • Energy Audit,
  • Field Review Audit.
  • Financial Audit,
  • Information Technology Audit,
  • Operational Audit,
  • Performance Audit
  • Project Audit,
  • Quality Audit.
• See: Audit Committee, Audit Management Letter, Audit Report, Legal Person, Stakeholder (Corporate), Materiality (Auditing).

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References

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/audit Retrieved:2016-10-21.
  • An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditing has become such a ubiquitous phenomenon in the corporate and the public sector that academics started identifying an "Audit Society". The auditor perceives and recognises the propositions before him/her for examination, obtains evidence, evaluates the same and formulates an opinion on the basis of his judgement which is communicated through his audit report. Any subject matter may be audited. Audits provide third party assurance to various stakeholders that the subject matter is free from material misstatement. The term is most frequently applied to audits of the financial information relating to a legal person. Other areas which are commonly audited include: secretarial & compliance audit, internal controls, quality management, project management, water management, and energy conservation. As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk management, control, and the governance process over the subject matter. The word audit is derived from a Latin word "audire" which means "to hear". During the medieval times when manual book-keeping was prevalent, auditors in Britain used to hear the accounts read out for them and checked that the organisation's personnel were not negligent or fraudulent.

2008

• (MA DoR, 2008) ⇒ Massachussets DoR. (2008). “Municipal Finance Glossary.” Massachussets Department of Revenue - Division of Local Services
  • QUOTE: Audit – An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool for evaluating the fiscal performance of a community.

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