Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

APPENDIX ADEFINITIONS OF TERMS—AU-C STANDARDS

Accounting estimate.  An approximation of a monetary amount in the absence of a precise means of measurement. This term is used for an amount measured at fair value when there is estimation uncertainty, as well as for other amounts that require estimation. When this section addresses only accounting estimates involving measurement at fair value, the term fair value accounting estimates is used.

Upon implementation of SAS 143, the following definition is effective:

A monetary amount for which the measurement, in accordance with the requirements of the applicable financial reporting framework, is subject to estimation uncertainty.

Accounting records.  The records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers; journal entries and other adjustments to the financial statements that are not reflected in journal entries; and records, such as worksheets and spreadsheets, supporting cost allocations, computations, reconciliations, and disclosures.

Analytical procedures.  Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data. Analytical procedures also encompass such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount. ...