Audit Cycle
 |
Definition of 'Audit Cycle'The accounting process that auditors employ in the review of a company's financial information. The audit cycle includes the steps that an auditor will take to ensure that the company's financial information is valid and accurate before releasing any financial statements. The audit cycle can call for different tasks to be performed at different times - for example, inventory can be counted in October and account receivables will be determined in November. |
 |
Investopedia explains 'Audit Cycle'The audit cycle typically involves several distinct steps and may include the identification process, where the company meets with auditors to identify the accounting areas that need to be reviewed; the audit methodology stage, where the auditors decide how the information will be collected for review; the audit fieldwork stage, where the auditors test and compare accounting samples; and the management review meeting stage, where the findings are presented by the auditors to the company's management team. |
Related Definitions
Articles Of Interest
-
Avoid An Audit: 6 "Red Flags" You Should Know
Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices. -
Evaluating The Board Of Directors
Corporate structure can tell you a lot about a company's potential. Learn more here. -
Examining A Career As An Auditor
Stricter government regulations have put auditing professionals in demand. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Get A Career In Showbiz Accounting
An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting. -
What Management Accountants Do
If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you. -
The Basics Of A Financial Analysis Report
Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ... -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ... -
Beware False Signals From The P/E Ratio
The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story.
Free Annual Reports
