Perpetual Inventory System
An inventory record that updates continuously as transactions occur, as distinct from a periodic system that only determines quantities at a physical count.
Related terms
- Peer Review (ICAI)
A review of a chartered accountant firm's attest function by another practising member, mandated by ICAI for firms conducting statutory audits of specified entities.
- Performance Materiality
An amount set below overall materiality, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
- Petty Cash
A small cash fund held for minor day-to-day expenses, reconciled and replenished periodically — a disproportionately common source of control weakness given the small amounts involved.
- Physical Verification
Directly inspecting an asset (inventory, fixed assets, cash) rather than relying solely on the book record, to confirm it exists and is in the condition and location the records claim.
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