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Cutoff period is a term in finance. In capital budgeting , it is the period (usually in years) below which a project's payback period must fall in order to accept the project. Generally it is the time period in which a project gives its investment back if a project fails to do so the project will be rejected.
Big Bath in accounting is an earnings management technique whereby a one-time charge is taken against income in order to reduce assets, which results in lower expenses in the future. [1] The write-off removes or reduces the asset from the financial books and results in lower net income for that year. The objective is to ‘take one big bath ...
[2] This is also called the cooling-off period or waiting period. Under the rules of the Securities Act of 1933 , as modified June 29, 2005, electronic communications, including electronic road shows and information located on or hyperlinked to an issuer's website are also governed.
An example of the negative effects a long-term tenure has on auditor independence is the consideration to issue a going-concern opinion. For example, if an auditor has been auditing a firm for over 10 years, they may brush off a large problem in the company and issue a clean opinion because they believe that they are familiar with the company.
The Comments column provides references to sections of Accounting Standards Codification (ASC) which complement or supersede a particular Audit and Accounting Guide. The ASC is published by the Financial Accounting Standards Board , and access to the ASC is free through the Basic View on the FASB web site.
Cooling-off period (consumer rights), a period of time during which the purchaser may cancel a purchase; Quiet period, the time which a company making an IPO must be silent about it, so as not to inflate the value of the stock artificially; Standstill period, the time to allow unsuccessful bidders to challenge the decision before a contract is ...
Audit technology is a general term used for computer-aided audit techniques (CAATs) used by accounting firms to enhance an engagement. These techniques improve the efficiency and effectiveness of audit findings by allowing auditors to analyze much larger sets of data, sometimes using entire populations of data, rather than taking a sample.
The objectives of an external audit or audits being conducted by someone not part of the business, is when one business audits a different business to determine if the accounting records are complete and correctly prepared according to GAAP (GAAP is the highest U.S. power on accounting standards and they must be followed by jurisprudence when preparing financial information for businesses ...