Term
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Definition
| Evaluations of financial information made through analysis of plausible relationships among both financial and nonfinancial data. |
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Term
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Definition
| An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights), goodwill, and brand recognition are common intangible assets. |
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Term
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Definition
| When a creditor or bank has the right to sell the mortgaged or collateral property of those who fail to meet the obligations of a loan contract. |
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Term
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Definition
| A type of asset that arises on a balance sheet as a result of a business making payments for goods and services to be received in the near future. While prepaid expenses are initially recorded as assets, their value is expensed over time as the benefit is received. |
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Term
| Property, Plant, and Equipment (PP&E) |
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Definition
| An asset that is vital to business operations but cannot be easily liquidated (e.g., warehouse, manufacturing equipment). |
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Term
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Definition
| Experts engaged or employed by auditors to provide evidential matter. |
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Term
| Substantive Tests of Transactions |
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Definition
| Tests to detect errors or fraud in individual transactions. |
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Term
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Definition
| Audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting material misstatements at the relevant assertion level. |
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Term
| Tests of Details of Account Balances and Disclosures |
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Definition
| Substantive tests that concentrate on the details of items contained in the account balance and disclosure. |
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