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Readme
BestBooks Accounting Application Framework - AUDITOR
Using the R-language and examples from https://github.com/ameypophali/Auditing-financial-data-using-R.git repository, BestBooks Auditor will provide automatic financial audits with a notation added to the financial report using the noteToFinancialStatement component of bestbooks-reports.
Introduction to R
See https://cran.r-project.org/doc/manuals/r-release/R-intro.pdf
Installing R
R language is required and can be installed from https://www.r-project.org/. The Rscript tool is used to launch R scripts from the command line, and is included in the R installation package.
Financial Statement Notes
An entry to the financial statements by bestbooks-auditor would be considered a management entry since the BestBooks Auditor is NOT a registered CPA or licensed Auditor.
10 GAAP Principles
- Principle of Regularity: GAAP-compliant accountants strictly adhere to established rules and regulations.
- Principle of Consistency: Consistent standards are applied throughout the financial reporting process.
- Principle of Sincerity: GAAP-compliant accountants are committed to accuracy and impartiality.
- Principle of Permanence of Methods: Consistent procedures are used in the preparation of all financial reports.
- Principle of Non-Compensation: All aspects of an organization's performance, whether positive or negative, are fully reported with no prospect of debt compensation.
- Principle of Prudence: Speculation does not influence the reporting of financial data.
- Principle of Continuity: Asset valuations assume the organization's operations will continue.
- Principle of Periodicity: Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years.
- Principle of Materiality: Financial reports fully disclose the organization's monetary situation.
- Principle of Utmost Good Faith: All involved parties are assumed to be acting honestly.
Audits
The audits which can be automated include,
- Fixed and Intangible Assets
- Prepaif Expenses and Deferred Charges
- Details o Transactions
- Long Term Liabilities and Stockholder Equity
- Cash and Investments (common accounts inclulde: Operating Checking Account, Payroll Checking Account, Merchant Account and Money Market Account [can also be currency trading account, a sweep account may also serve as this purpos ]))Internal Controls
An important factor of audits is to access the risk of internal controls. When revenue was received by the USPS, there were four employees to process, record and deposit the checks received. In today's economy where electronic payments are the norm, a paper trail is already established and routing payments to operating accountin is usually automatic.
PCAOB Auditing Standards
See https://pcaobus.org/oversight/standards/auditing-standards