There are three main types of audit: external audit, internal audit and Internal Revenue Service (IRS) audit.
External audits are usually carried out by Certified Auditing Firms (CPAs) and result in an auditor’s opinion that is included in the audit report.
An unqualified or pure auditor’s report means that the auditor has not identified any material misstatement as a result of his examination of the financial statements.
An external audit may include an examination of both the financial statements and the company’s internal controls.
Internal audit serves as a management tool for process improvement and internal control.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.