Cut-off Testing
Verifying that transactions are recorded in the period they actually occurred in, not an adjacent one — the classic question for revenue, purchases and inventory around a year end.
Related terms
- COSO Framework
A widely used internal control framework (Committee of Sponsoring Organizations of the Treadway Commission) describing five components of effective internal control, commonly used as the basis for IFC assessments in India.
- Cost Audit
An audit of a company's cost records, required for specified classes of companies engaged in regulated or strategic sectors, reported separately from the statutory financial audit.
- Data Analytics in Audit
Using analysis of large datasets — often the full population rather than a sample — to identify patterns, outliers and anomalies that direct audit attention.
- Debt Service Coverage Ratio (DSCR)
A ratio measuring a company's ability to service its debt obligations from operating cash flow — frequently a loan covenant a lender monitors.
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231 terms in total, or go deeper with working procedures and worked examples in the resource library.