Accounting system – the personnel, procedures, devices and records used by an organization to develop accounting information and communicate that information to decision-makers.
Audit – an investigation of financial statements designed to determine their fairness in relation to generally accepted accounting principles.
Balance sheet – a position statement that shows where the company stands in financial terms at a specific date
Bookkeeping – the clerical dimension of accounting that includes recording the daily transactions and record keeping of an enterprise
Cash flow prospects – the likelihood that an enterprise will be able to provide an investor with both a return on the investor’s investment and return of that investment
Control activities – policies and procedures that management puts in place to address the risks identified during the risk assessment process
Control environment - the foundation for all other elements of internal control, setting the overall tone for the organization
Corporate governance – includes the corporate structures and processes for overseeing a company’s affairs
External users – individuals and other enterprises that have a financial interest in the reporting enterprise but that are not involved in the day-to-day operations of that enterprise
Financial accounting – providing information about the financial resources, obligations and activities of an economic entity that is intended for use primarily by external decision makers such as investors and creditors
Financial statement – a monetary declaration of what is believed to be true about an enterprise
Generally accepted accounting principles – principles that provide the framework for determining what information is to be included in financial statements and how that information is to be presented
General-purpose information – information that is intended to meet the needs of multiple users that have an interest in the financial activities of an...