Auditing

Original paper or electronic evidence of a transaction that supports bookkeeping entries, audit trails, and accounting review.

Sequence of source documents, approvals, system records, and ledger evidence that lets users trace a transaction from origin to reporting.

Threshold concept used to judge whether an omission or misstatement could influence the decisions of financial-statement users.

Audit procedure that starts with an accounting entry and works back to source documents to test whether the recorded transaction is genuine, accurate, and authorized.

Policies, procedures, and control activities designed to reduce reporting errors, misuse of assets, and control failures.

Internal control principle that divides authorization, recordkeeping, custody, and review duties so one person cannot control an entire risky transaction flow.