What are some common audit terms I should know?

What are some common audit terms I should know?

Some common audit terms include "materiality," "internal controls," and "substantive testing." Would you like definitions for these?

Yes, please explain materiality.

Materiality refers to the significance of an amount, transaction, or discrepancy that could influence the decision-making of users of financial statements.

What about internal controls?

Internal controls are processes put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Can you tell me about substantive testing?

Substantive testing involves evaluating the accuracy of financial information by examining evidence, such as transactions and account balances.