Preface
The Indiana State Board of Accounts has the statutory duty to examine all accounts and financial affairs of every public office and officer, state office, state institution, and entity within the State of Indiana. It is our mission to provide its citizens with complete confidence in the integrity and financial accountability of state and local government. In our continuance to provide the highest level of professional service to governmental units and the public, we have created a glossary of accounting and auditing terms that are relevant to the audit work conducted within the State of Indiana and our agency.
The glossary contains definitions of accounting, reporting, and auditing terms that are commonly used in the course of conducting our engagements and often appear in the reports issued by our agency.
We have provided sources for these definitions for further reference. The most authoritative source is provided but additional sources maybe available. There are terms listed within this glossary that are not explicitly defined in authoritative guidance. In these instances, the State Board of Accounts has compiled definitions based on research and our staffs' knowledge and experience.
Our reports are intended to provide objective information about the financial condition and compliance with the laws and regulations governing the units and entities we examine. It is our hope that the glossary is a beneficial resource in reviewing our reports and gives a proper perspective of the findings contained within our reports. An online version of this glossary is also available on our website.
If you have any questions for our office, whether it be about these terms, or otherwise, please don’t hesitate to call our office at (317) 232-2513 or send an email to one of the following:
Cities.Towns@sboa.in.gov
Communications@sboa.in.gov
Counties@sboa.in.gov
Libraries@sboa.in.gov
NotForProfit@sboa.in.gov
Schools.Townships@sboa.in.gov
SpecialDistricts@sboa.in.gov
StateAdvisoryServices@sboa.in.gov
Paul D. Joyce, CPA, State Examiner
Beth Kelley, CPA, Deputy State Examiner
Tammy R. White, CPA, Deputy State Examiner
SBOA Glossary of Accounting and Audit Terms
Authoritative Bodies
Sources are provided below for further reference. If there is an authoritative source, the most authoritative source is provided but additional sources may be available. Below is a list of the most common sources, brief explanations of how the sources are cited, and the location of where the sources are located.
There are terms listed within this glossary that are not explicitly defined in authoritative guidance. In these instances, the State Board of Accounts has compiled definitions based on research and the staff’s knowledge and experience.
Clarified Statements on Auditing Standards (SASs)
The Clarified Statements on Auditing Standards clearly state the objectives of an auditor and the requirements with which the auditor must comply when conducting an audit in accordance with generally accepted auditing standards (GAAS). References to the SASs will include the section number and paragraph within which the information can be found. An example is as follows: AU-C 200.04. The standards can be found on the American Institute of Certified Public Accountants’ (AICPA) website, located here: https://www.aicpa.org/research/standards/auditattest/clarifiedsas.html.
Code of Federal Regulations
The Code of Federal Regulations (CFR) is the codification of the general and permanent rules by the departments and agencies of the Federal Government. Title 2, part 200 contains the uniform administrative requirements, cost principles, and audit requirements for federal awards. It is referenced with the title, part, and paragraph where the information is located. An example is as follows: 2 CFR 200.518. These requirements can be located in their entirety or in sections by using the search engine on the Code of Federal Regulations website, located here: https://www.govinfo.gov/help/cfr.
Government Accounting Standards Board (GASB)
The GASB is the standard-setting body for governmental units. References to the GASB will be to either the statements or the codification. The statements provide authoritative guidance; the codifications are drawn from the statements and other GASB literature. The references to GASB will include the statement and paragraph within which the information can be found. As examples, the statements will be cited as GASB 34, paragraph 6; the codification will be cited as GASB Cod. Sec. 2300.102. GASB’s original pronouncements, codification, and other sources can be found by creating a free account on the Governmental Accounting Research System (GARS), located here: https://gars.gasb.org/.
Government Auditing Standards
Government Auditing Standards is commonly referred to as generally accepted government auditing standards (GAGAS) or the Yellow Book. The reference will include the chapter and paragraph number where the information can be found. An example is as follows: GAGAS 1.20. The complete standards can be located on the Government Accountability Office’s (GAO) website, located here: https://www.gao.gov/yellowbook/overview.
Acronyms
Certifications
CFE____________Certified Fraud Examiner
CGFM__________Certified Government Financial Manager
CISA___________Certified Information Systems Auditor
CPA___________Certified Public Accountant
Organizations
AICPA__________American Institute of Certified Public Accounts
COSO__________Committee of Sponsoring Organizations of the Treadway Commission
GFOA__________Government Finance Officers Association
IIA_____________Institute of Internal Auditors
IMA___________Institute of Management Accountants
ISACA_________Information Systems Audit and Control Association
Standards Setting Organizations
ASB_____________Accounting Standards Board
FASB____________Financial Accounting Standards Board
GAO____________U.S Government Accountability Office
GASB___________Government Accounting Standards Board
OMB___________U.S. Office of Management and Budget
Auditing and Accounting Standards
GAAP___________Generally Accepted Accounting Principals
GAAS___________Generally Accepted Auditing Standards
GAGAS_________Generally Accepted Government Auditing Standards
Other
AFR____________Annual Financial Report
ACFR__________Annual Comprehansive Financial Report
ALN__________Assistance Listing Number
SEFA___________Schedule of Expenditures of Federal Awards