Tracking Financial Performance Standards of ... - Sa-Dhan

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Tracking Financial Performance Standards of Microfinance InstitutionsTermAuditAudit EngagementAudit RiskAudit SamplingAuditing StandardsAuditorAuditors' OpinionAutomated Data ProcessingAuxiliary RecordAverage Collection Period forAccounts ReceivableBacklogBad DebtBalanceDefinitionA review of (1) the operating, administrative, and financial activities of anagency for conformance with all legal and administrative requirements andconformance with the principles of economy and efficiency; or (2) selectedclaims, cost proposals, grants, loans, or similar agreements entered into by anagency for conformance with the principles of economy and efficiency.Agreement between an audit firm and its client to perform an audit.The risk that the auditor may unknowingly fail to modify appropriately his orher opinion on financial statements that are materially misstated.Application of an audit procedure to less than 100% of the items within anaccount balance or class of transactions for the purpose of evaluating somecharacteristic of the balance or class.Guidelines to which an auditor adheres. auditing standards encompass theauditor's professional qualities, as well as his or her judgment in performingan audit and in preparing the auditors' report.Person who audits financial accounts and records kept by others. a person orfirm an entity hires as an independent third party to review its financialinformation. The auditor's main purpose is to make sure the statement ofearnings, statement of financial position, and statement of cash flows fairlypresent the company's financial condition, and that they comply with auditingstandards set forth by the various regulatory bodiesA summary of the findings of a firm of certified public accountants (Charteredaccountants) that audits, or examines, a company's financial statements. Thisreport is included in the company's annual report. Also called auditors' reportand report of independent accountants.The general term applied to the processing of data by mechanical or electronicequipment that operates with a minimum of manual intervention.A business record that is not essential but is helpful in maintaining recordsthat are essential; an example is the petty cash payments record.A rough measure of the length of time accounts receivable have beenoutstanding. Calculated by dividing 365 days by the accounts receivableturnover.The amount of a company's unfilled orders at the end of the year. When thecompany fills the orders the following year, it records the revenue on thestatement of earnings. Frequently, a company will give its perspective on backlogin the management discussion section in the annual report.A debt that is not collectible and is therefore worthless to the creditor. All orportion of an Account, loan, or note receivable considered to beuncollectible.An account receivable that, for one reason or another, cannot becollected.Sum of debit entries minus the sum of credit entries in an account. if positive,the difference is called a debit balance; if negative, a credit balance. Thebalance of an account is determined by footing (adding) the debit side,footing the credit side, and calculating the difference between the two sides.114
Glossary of Financial TermsTermBalance Form of AccountBalance of an AccountBalance SheetBalance Sheet ApproachBank Checking AccountBank DiscountBank ReconciliationBank StatementBankruptcyBoard of DirectorsBook of Original EntryBook ValueBook Value of Asset.Book ValueBookkeepingDefinitionA ledger account form with four amount columns that many businesses preferto use because the balance is always known and it is easy to see whether thebalance is a debit or a credit. Also called the four-column account form.The amount of difference between the debits and the credits that have beenentered into an account.Financial statement presenting measures of the assets, liabilities and owner'sequity or net worth of business firm or nonprofit organization as of a specificmoment in time. Basic financial statement, usually accompanied by appropriatedisclosures that describe the basis of accounting used in its preparation andpresentation of a specified date the entity's assets, liabilities and the equity ofits owners. also known as a statement of financial condition. A listing of afirm's assets, liabilities, and owner's equity at a specific point in time. Otherterms used to describe the balance sheet are statement of financial positionand position statement.A method of estimating the bad debts expense under the allowance method inwhich the expense is based on aging the accounts receivable.An amount of cash on deposit with a bank that the bank must pay at thewritten order of the depositor.Interest deducted in advance by a bank.Making the bank statement balance agree with the checkbook balance.Themethod of analysis that details the items that are responsible for the differencebetween the cash balance reported in the bank statement and the balance ofthe cash account in the ledger.A monthly report showing the bank's record of the checking account.A condition in which a firm does not have sufficient cash to pay its creditors.Legal process, governed by federal statute, whereby the debts of an insolventperson are liquidated after being satisfied to the greatest extent possible by thedebtor's assets during bankruptcy, the debtor's assets are held and managedby a court appointed trustee.Individuals responsible for overseeing the affairs of an entity, including theelection of its officers. People elected by a corporation's stockholders to overseethe business & appoint the officers.The journal is referred to as the book of original entry because it is the firstplace in which transactions are formally recorded.Amount, net or contra account balances, that an asset or liability shows onthe balance sheet of a company. also known as carrying value. The differencebetween the cost of an asset and its accumulated depreciation.The cost of an asset less the balance of any related contra asset accountThe value of an asset, a liability, or a stockholders' equity account. For a fixedasset, it is typically the cost of the asset minus accumulated depreciation. Ascompanies continue to use fixed assets to generate revenue, the book valueslessen, and sometimes ultimately reach zero.The recording of business data in a prescribed manner.115
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TECHNICAL TOOL SERIES 1TRACKING FIN
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INTRODUCTION TOMICROFINANCE STANDAR
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5. PERFORMANCE STANDARDS - CONCEPT,
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ACKNOWLEDGMENTSThe need of the oper
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Tracking Financial Performance Stan
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Tracking Financial Performance Standards of ... - Sa-Dhan

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