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By R. H. Parker (auth.)
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Average. A measure of the central tendency of aseries of items. Usually refers to the ARITHMETICMEAN but see also MEDIAN; MODE; GEOMETRIC MEAN. average eollection period. The average speed at which a company collects its debts. It can be ca1culated as average debtors x 365 days credit sales average deviation. A measure of DISPERobtained by ca1culating the ARITHMETIC MEAN of the differences (added without regard to sign) between each item of a group of numerical data and their arithmetic mean or other selected point.
In accordance witb Auditing Standards. In our opinion tbe financial statements give a true and fair view of tbe state of affairs of the company and the group at . . e. to its shareholders. e. the PROFIT AND LOSS ACCOUNT, the BALANCE SHEETS (that of the parent company and that of the group) and the NOTES TO THE ACCOUNTS, as required by law, and also the CASH FLOW STATEMENT, show a TRUEANDFAIR VlEW. The auditor also reports whether or not all the relevant requirements of the Companies Act have been complied with.
Analysis of variance (ANOVA). In statistics, the analjsis of the total variation in adependent variable into the proportions accounted for by the explanatory variables and the unexplained or residual variation. analytical auditing. Synonym for SYSTEMSBASED AUDIT. analytical review. The process of examining and comparing figures, financial and non-financial, with internal and extern al data, in order to help an auditor to form a judgment on their correctness, and on the truth and fairness of the financial statements.