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Letter of Credit

A bank's conditional undertaking to pay a seller on a buyer's behalf once specified documents are presented, commonly used in import/export trade.

Related terms

  • Key Control

    A control that, if it failed, would be unlikely to be detected by another control in time to prevent a material error — the controls an IFC testing plan should prioritise.

  • Leave Encashment

    Payment made to an employee for unused earned leave, either on separation or periodically — like gratuity, typically provided for on an actuarial basis for larger employers.

  • Letter of Undertaking (LUT)

    A document filed by an exporter to supply goods or services without payment of integrated tax, as an alternative to paying IGST and claiming a refund.

  • Limited Review

    A review of interim financial results, less in scope than a full audit, typically performed on a listed company's quarterly results.

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231 terms in total, or go deeper with working procedures and worked examples in the resource library.

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