Accounting Risk Terminology Explanation, Risk Terminology Explanation

Accounting risk is also known as book risk. Risk is the danger or loss that may result from people's behavior towards something in a certain time and space environment, and it has a certain degree of objectivity and uncertainty. Risk refers to the degree of change in various outcomes that may occur in a certain period of time, and is the uncertainty of things themselves, which may bring benefits and losses.

Accounting risk stems from the distortion of accounting information, which not only brings economic losses to enterprises, but also makes accountants bear legal responsibility.

It will also bring serious losses to the public, and wrong accounting information will make the resource allocation mechanism inefficient, mislead the flow of resources, cause a waste of social resources, and be detrimental to social and economic development.

False accounting information will damage the corporate image, affect the survival and development of the enterprise, and will also lead to a serious crisis of social trust.

make all kinds of illegal acts.

There is an opportunity. With the development of social economy and the increasing complexity of economic life, accounting risks are increasing day by day, and some enterprises are driven by interests to ignore accounting risks, and these behaviors have caused serious damage to the enterprises themselves, investors, creditors and the development of China's economy, and have become a common concern in the theoretical and practical circles in the accounting field and even in the entire economic field.

Accounting risk refers to the possibility of loss due to a large number of errors in the accounting information provided by accountants in a certain time and space environment. Accounting risk can be divided into the liability risk of accountants, the liability risk of managers, and the loss risk of accounting information users. The possibility that the accountant will lose money due to material errors in the accounting information provided.

Specifically, accounting risk refers to the risk that accounting institutions or personnel will suffer losses due to misstatement or omission of accounting information, which makes the financial accounting report untrue or misleads the monitoring behavior based on false information when carrying out their work. The issue of accounting risk in China has not been widely paid attention to by enterprises.

Risk refers to the possibility of a certain loss occurring in a specific environment and in a specific period of time.

Risk is made up of elements such as risk factors, risk accidents, and risk losses. In other words, the distance between what people expect to achieve and what actually happens in a given period of time is called risk.

Characteristics of the risk:

1) Objectivity: Risks exist objectively and are not subject to human will. Risk objectivity is the natural basis for the emergence and development of insurance.

People can only change the conditions for the formation and development of risks within a certain range, reduce the probability of risk accidents, and reduce the degree of losses, but cannot completely eliminate risks.

2) Loss: After the risk occurs, it will inevitably cause some kind of loss to people, but people cannot predict and determine the occurrence of loss. People can only strictly prevent the occurrence of risks and reduce the losses caused by risks on the basis of understanding and understanding risks, and losses are the inevitable result of risks.

3) Uncertainty: Risk is objective and universal, but its occurrence is uncertain and a random phenomenon in terms of a specific risk loss. For example, the occurrence of a fire is an objective risk accident, but it is uncertain and unpredictable as far as the occurrence of a specific fire is concerned, and people need to strengthen prevention and improve fire prevention awareness.

4) Universality: Risks are ubiquitous and present in people's production and life, and threaten the safety of human life and property, such as disasters, floods, fires, accidents, etc. With the continuous progress and development of human society, human beings will face more and more new risks, and the losses caused by risk accidents may also become larger and larger.

With the occurrence of risks, people will suffer economic losses or physical injuries in their daily economy and life, and enterprises will face production, operation and financial losses.

6) Measurability: Although the occurrence of a single risk is uncertain, the occurrence of risk accidents is measurable for the overall risk, that is, the occurrence of the overall risk accident can be statistically analyzed by using probability theory and the law of large numbers to study the regularity of the risk. The measurability of risk accidents provides a scientific basis for the determination of insurance rates.

7) Variability: Everything in the world is in motion and changing, and so is risk. There are changes in risk, there is an increase or decrease in quantity, there is a qualitative change, and there is also the disappearance of old risks and the emergence of new risks.

Changes in risk factors are mainly caused by changes in scientific and technological progress, changes in economic systems and structures, and changes in political and social structures.

Financial risk, also known as financing risk, refers to the possibility of insolvency and the variability of corporate profits (shareholder returns) due to borrowed funds.

1. Enterprises bear a certain degree of risk in all aspects of financing, investment and production and operation activities. The degree of risk assumed by enterprises varies depending on the type of debt, maturity and use of funds.

2. Therefore, in addition to planning the amount of funds required and raising the required funds in an appropriate way, the financing decision must also correctly weigh the risk degree under different financing methods, and put forward measures to avoid and prevent the risk of the wind and the mu.

3. Fund-raising activities are the starting point of an enterprise's production and operation activities. The main purpose of raising funds for general enterprises is to expand the scale of production and operation and improve economic efficiency.

4. In order to obtain more economic benefits and raise funds, it will inevitably increase the financing burden of repayment of principal and interest on time, because the profit rate of enterprise capital and the interest rate of borrowing are uncertain (both may increase or decrease) rapid imitation, so that the profit rate of enterprise capital may be higher or lower than the interest rate of borrowing.

What are the financial risks of a business?

The financial risk of an enterprise runs through the whole process of production and operation, and can be divided into four aspects: financing risk, investment risk, liquidity risk and income distribution risk.

1. Financing risk refers to the uncertainty brought by the financial results of enterprises raising funds due to changes in the capital supply and demand market and macroeconomic environment, and the financing risk mainly includes interest rate risk, refinancing risk, financial leverage effect, exchange rate risk, purchasing power risk, etc.

2. Investment risk refers to the risk that the final return deviates from the expected return due to changes in market demand after the enterprise invests a certain amount of funds, and the investment risk mainly includes interest rate risk, reinvestment risk, exchange rate risk, inflation risk, financial derivatives risk, moral hazard, default risk, etc.

3. Liquidity risk refers to the possibility that the assets of the enterprise cannot be transferred in cash normally and deterministically or the debts and cash payment obligations of the enterprise cannot be performed normally, and in this sense, the liquidity risk of the enterprise can be analyzed and evaluated from the two aspects of the company's liquidity and solvency.

4. The risk of income distribution refers to the adverse impact that the income distribution of the chain may have on the subsequent operation and management of the enterprise.

Summary. Answer: It refers to the uncertainty of the financial results of the enterprise due to the financing of the enterprise. It stems from the uncertainty of the difference between the profit rate of the enterprise's capital and the interest rate of the borrowed funds and the proportion of borrowed funds to its own funds.

Answer: It refers to the uncertainty brought by the company's financial results due to fund-raising reasons. It stems from the in-permeability determination factor of the difference between the profit rate of the enterprise's capital and the interest rate of the borrowed funds and the size of the proportion of borrowed funds to its own funds.

Financial risk refers to the possibility that the final financial results obtained by the enterprise in a certain period of time and within a certain range deviate from the expected business objectives due to various unpredictable and uncontrollable factors in various financial activities, thus forming the possibility of causing the enterprise to suffer economic losses or greater benefits. The financial activities of an enterprise run through the entire process of production and operation, and the risk of raising funds, long-term and short-term investment, and distributing profits may lead to the risk of old age. According to the ** of the risk, the financial risk can be divided into:

1.Financing risk Financing risk refers to the uncertainty of the financial results of the company's fund-raising due to changes in the capital supply and demand market and the macroeconomic environment. Financing risks mainly include interest rate risk, refinancing risk, financial leverage effect, exchange rate risk, purchasing power risk, etc.

Interest rate risk refers to the change in the cost of financing due to the fluctuation of financial assets in the financial market; Refinancing risk refers to the uncertainty of refinancing due to changes in the types of financial instruments and financing methods in the financial market, or the difficulty of refinancing due to the unreasonable financing structure of the enterprise itself; Financial leverage refers to the uncertainty brought to the interests of stakeholders by enterprises due to the use of leveraged financing; Exchange rate risk refers to the uncertainty of the results of an enterprise's foreign exchange business caused by exchange rate changes; Purchasing power risk refers to the impact of changes in currency value on financing. 2.Investment risk Investment risk refers to the risk that after an enterprise invests a certain amount of money, the final return will be affected by the deviation between the final return and the expected return due to changes in market demand.

Dear, hello, I am glad to answer the short-term financial risk terminology explanation is Financial risk refers to the possibility that the final financial results obtained by the enterprise in a certain period and within a certain range deviate from the expected business objectives due to various unpredictable and uncontrollable factors in various financial activities, thus forming the possibility of causing the enterprise to suffer economic losses or greater benefits. The causes of corporate financial risks include external reasons and internal reasons. The complexity of the macro environment of corporate financial management is an external cause of financial risk for enterprises.

Among them, the macroeconomic environment includes factors such as economic environment, legal environment, market environment, social and cultural environment, and resource environment; The financial management personnel's lack of objectivity and understanding of financial risks, and the lack of scientific decision-making lead to decision-making errors are the internal reasons for the financial risks of Qishan Code Industry. According to the risk level, financial risk can be divided into financing risk, investment risk, operational risk, inventory management risk and liquidity risk.

Audit risk is the possibility of misjudgment in financial statements that contain material misrepresentations.

Kohler's Accounting Dictionary defines audit risk as:

First, the identified financial statements may actually fail to fairly reflect the financial position and operating results of the audited entity in accordance with generally accepted accounting principles;

The second is the possibility that there are important errors in the audited unit or audit scope, which are not noticed by the auditors. “

U.S. Notes on Auditing Standards No. 47 considers: "Audit risk is the risk that an auditor inadvertently fails to properly revise the audit opinion on the financial statements containing material misstatements. "Dust hits.

According to the Canadian Institute of Chartered Accountants, "Audit risk is the risk that an audit process fails to detect a material error. “

1) If the direct parameter signal can be obtained by changing Zheng Tang, and the lag of the measurement and transmission signal is less than that after the hysteresis of the controlled process, the direct parameter should be selected as the controlled variable as far as possible;

2) If the direct parameter signal cannot be obtained, or the lag between the measurement and transmission signal is large, the indirect parameter with the unit function relationship of the direct parameter can be selected as the controlled variable;

3) as the controlled discoloration must be measurable and have sufficiently large measurement sensitivity; Selectable with direct parameters there.

4) When selecting the controlled variables, the process rationality and the status quo of the instrument products available for selection must be considered;

5) The controlled variable should be independent and controllable.

In the production process, there are many factors that affect normal operation, but not all of them need to be controlled automatically. The correct selection of controlled variables is of decisive significance for stabilizing the production process, increasing labor productivity, and improving production conditions. The selection principles of the control variables are:

Single variable principle. Only one quantity is changed, and the other quantities and the external environment remain unchanged.

What is Finance.

Finance refers to the issuance of money, the circulation of commodities, the issuance and issuance of loans, the deposit and acquisition of savings, the transaction of discounts and other economic activities, and the circulation of equivalent circuit commodities with use value and income after the original resources are optimized again. Finance is the personal behavior of people who make decisions about the optimal allocation of resources in an uncertain natural environment. This article mainly writes about what is related to financial risks, and the content is for reference only.

Financial risk refers to the underlying factors that may cause losses or uncertainties in financial activities. Here are some explanations of common financial risk terms: Market Risk:

Market risk is the risk caused by the volatility and uncertainty of the financial markets. It includes volatility risk in financial assets such as bonds, commodities and foreign exchange markets. Credit Risk:

Credit risk assessment refers to the risk that a borrower or debtor will not be able to perform on time or default. This can result in loan defaults, bond defaults, or losses in credit derivatives. Liquidity Risk:

Liquidity clearance risk refers to the risk of not being able to buy, sell or convert assets in a timely and reasonable** manner. When there is an imbalance between supply and demand in the market or there is insufficient liquidity in the market, it may become difficult to buy and sell assets, resulting in the inability to realize assets in a timely manner.