Audit

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Audit

An examination of a company's accounting records and books conducted by an outside professional in order to determine whether the company is maintaining records according to generally accepted accounting principles. See: accountant's opinion.

Audit

1. The process of reviewing activities to identify inefficiencies, reduce costs, and otherwise achieve organizational objectives. Audits may investigate potential theft or fraud and ensure compliance with applicable regulations and policies. They also help ensure the accuracy of reports. Audits are an essential part of a company's efficiency.

2. In taxation, the process in which the tax collection agency reviewing the reports of an individual or company to see if all income, deductions, and/or credits reported accurately reflect reality. This is done to ensure that each individual or company pays his/her/its full tax liability. Audits are conducted on a random basis, or when something appears remiss on a tax return. See also: Tax avoidance, Tax evasion.

audit

An examination of an organization's financial documents in order to determine whether the records and reports are valid and the information is fairly presented. An independent audit is usually conducted by a Certified Public Accountant who then issues an opinion as to whether the statements accurately and fairly represent the firm's operations and financial position. See also external audit, internal audit.

Audit.

An audit is a professional, independent examination of a company's financial statements and accounting documents following generally accepted accounting principles (GAAP).

An IRS audit, in contrast, is an examination of a taxpayer's return, usually to question the accuracy or acceptability of the information the return reports.

audit

  1. the legal requirement for a JOINT-STOCK COMPANY to have its BALANCE SHEET and PROFIT-AND-LOSS ACCOUNT (the financial statements) and underlying accounting system and records examined by a qualified AUDITOR, so as to enable an opinion to be formed as to whether such financial statements show a TRUE AND FAIR VIEW of the company's state of affairs and that they comply with the relevant statutes. Auditing involves inspecting documentary evidence of transactions such as INVOICES, STATEMENTS and DELIVERY NOTES to ensure that the DOUBLE-ENTRY accounting entries are complete and authentic.

    Where the auditor is satisfied that the financial statements show a ‘true and fair view’ he will report this to the SHAREHOLDERS in the ANNUAL REPORT AND ACCOUNTS. However, if he is not satisfied that the financial statements show a ‘true and fair view’ or he is unhappy about any explanations given by the managers, then he may make a ‘qualified report’ to the shareholders expressing his precise misgivings.

  2. internal audits of accounting procedures, marketing activities, production operations, quality control systems, and safety may be undertaken to monitor and review the efficiency and effectiveness with which these various activities are undertaken. In addition, a company may undertake a value-for-money audit, to evaluate whether the organization is operating effectively. See also MARKETING AUDIT.

audit

the legal requirement for a JOINT-STOCK COMPANY to have its BALANCE SHEET and PROFIT-AND-LOSS ACCOUNT (the financial statements) and underlying accounting system and records examined by a qualified auditor, so as to enable an opinion to be formed as to whether such financial statements show a true and fair view and that they comply with the relevant statutes. See also ENVIRONMENTAL AUDIT, VALUE FOR MONEY AUDIT.

Audit

An IRS examination and verification of a taxpayer's return or other transactions with tax consequences. An office audit is an audit by the IRS that is conducted in the agent's office. A field audit is conducted by the IRS on the business premises of the taxpayer or in the office of the tax practitioner representing the taxpayer.
References in periodicals archive ?
Accordingly, reports under SAS 70, and now SSAE 16, have emerged as the generally accepted method for companies to become comfortable with their service providers' controls and, in turn, have become an essential compliance monitoring tool.
Successful completion of a SAS 70 audit provides third-party validation that a company complies with the critical internal control standards required by Section 404 of the Sarbanes-Oxley Act.
By successfully completing the SAS 70 Audit, we provide assurance to our clients that both security and customer service are paramount.
As a provider of IT hosting solutions to more than 70,000 customers including BlackLine Systems, we understand the importance of providing customers with a SAS 70 Type II report.
will continue to review the processes and controls put in place, and plans for ongoing SAS 70 auditing to improve its practices.
A SAS 70 Audit represents a thorough review of a company's internal controls by an independent and reputable third-party.
A SAS 70 report provides an independent assessment of a service organization's specified internal controls.
A SAS 70 certification has become standard in the data center industry as a sign of stable uptime, mature data center management, and dependable data security.
In this 2-hour live webcast, a panel of expert speakers will review the fundamentals and provide updates for SAS 70 transformation.
EastNets, a leading global provider of compliance and payments solutions, announced today that it has achieved the SAS 70 Type II Certification, the American Institute of Certified Public Accountants' (AICPA) stringent Statement on Auditing Standards No.
SAS 70, a standard first issued in 1993 by the American Institute of Certified Public Accountants, provides guidance for independent auditors to examine and report on the controls in place at service organizations, including insurers.
There is some question as to whether SAS 70 (Statement on Auditing Standard 70, Reports on the Processing of Transactions by Service Organizations) is adequate for the requirements of AS2 [Auditing Standard No.