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1. American Institute of Certified Public Accountants (AICPA) – represents the public accounting profession (CPAs) in the U.S.

2. Audit – a process that results in an opinion expressed on whether the financial statements are presented fairly in accordance with Generally Accepted Accounting Principles.

3. Auditor – determines that business transactions reflected in the financial statements are presented according to Generally Accepted Accounting Principles.

4. Certified Public Accountants (CPAs) – licensed by state boards of accountancy in each state to practice public accounting based upon a national licensing exam.

5. Compilation – preparation of financial statements by a CPA without review or auditing.

6. Correcting journal entries – used to rectify incorrect journal entries; first, reverse the incorrect journal entry, then make the correct entry.

7. Estimates – used when determining the cost allocation of a depreciable asset and other multi-period deferrals and accruals.

8. Ethics in Accounting – are an integral part of accounting. The accounting process creates information that has a direct effect on all stakeholders in an economic entity.

9. Financing – investment capital provided by owners, creditors, and others.

10. Generally Accepted Accounting Principles (GAAP) – accounting practices and principles established by the Financial Accounting Standards Board (FASB).

11. IIA and IMA standards for ethical conduct – (1) competence, (2) confidentiality, (3) integrity, and (4) objectivity.

12. Institute of Internal Auditors (IIA) – worldwide organization that establishes ethical conduct in the practice of internal audits.

13. Institute of Management Accountants (IMA) – dedicated to ethical conduct in the practice of management accounting and financial management.

14. Net entry – corrects an error by correcting incorrect balances.

15. Prior period errors – require adjustment to retained earnings (or other equity account) to correct an income statement account entry from previous period.

16. Public Company Accounting Oversight Board (PCAOB) – regulates and establishes standards and procedures for audits of public companies.

17. Review – limited check of financial statements with little investigation by a CPA.