Useful Links on Audit Analytical Procedures

Here is a general list of GAAP compliance principles:
- Principle Of Regularity:
Regularity is defined as conformity to enforced rules and laws.
- Principle Of Consistency:
The consistency principle requires accountants to apply the same methods and procedures from period to period.
= Principle Of Sincerity:
According to this principle, the accounting unit should reflect in good faith the reality of the company's financial status.
- Principle Of The Permanence Of Methods:
This accounting principle aims to provide coherence and allow comparison of the financial information published by the company.
- Principle Of Non-Compensation:
One should show the full details of the financial accounting information and not seek to compensate a debt with an asset, a revenue with an expense, etc.
- Principle Of Prudence:
This accounting principle aims to show the reality "as is" -- one should not try to make things look prettier than they are. Typically, revenue should be recorded only when it is certain and a provision should be entered for an expense which is probable.
- Principle Of Continuity:
When stating financial information, one should assume that the business will not be interrupted. This accounting principle mitigates the principle of prudence -- assets do not have to be accounted at their disposable value, but it is accepted that they are at their historical value.
- Principle Of Periodicity:
Each financial accounting entry should be allocated to a given period, and split accordingly if it covers several periods. If a client pre-pays a subscription (or lease, etc.), the given revenue should be split to the entire timespan and not counted for entirely on the date of the transaction.
- Principle Of Full Disclosure/Materiality:
All financial accounting information and values pertaining to the financial position of a business must be disclosed in the records.
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