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money, the customer is de- creasing the bank’s liability.

Since liability accounts nor- mally have a credit balance, the withdrawal of cash from a banking account is reflected on the bank’s balance sheet as a debit.

debt n syn.: borrowed funds

1) something that is owed, such as money, goods, or ser- vices;

2) bad debt;

3) an obligation to pay or per- form something; liability;

4) the state of owing some- thing, esp. money, or of being under an obligation (esp. in the phrases in debt, in (some- one’s) debt) bad debt — a debt that has little or no prospect of being paid

Commentary

It is that which is owed; usual- ly referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the pres- ent before a summation has been earned. Some companies and corporations use debt as a part of their overall corpo- rate finance strategy.

A debt is created when a cred- itor agrees to lend a sum of as- sets to a debtor. In modern so-

ciety, debt is usually granted with expected repayment; in many cases, plus interest. Historically, debt was responsible for the creation of indentured servants.

debtor n a person or com- mercial enterprise that owes a ­financial obligation; cf. creditor n

default n 1) failure to perform a task or fulfill an obligation, especially failure to meet a fi- nancial obligation: in default on a loan;

2) L failure to make a required court appearance

default v 1) a/ to fail to do what is required;

b/ to fail to pay money when it is due;

2) L a/ to fail to appear in court when summoned;

b/ to lose a case by not ap- pearing;

3) to fail to take part in or complete a scheduled contest

defaulter n 1) a person who de- faults;

2) someone who fails to meet a financial obligation

Deloitte abbrev. Vid Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu Limited abbrev. Deloitte an Anglo-American multinational professional services net- work, with headquarters in

London, England, Deloitte is one of the Big Four account- ing organizations; it provides audit, consulting, financial advisory, risk advisory, tax, and legal services with ap- proximately 312,000 profes- sionals globally.

Commentary

History

The firm was founded by Wil- liam Welch Deloitte in Lon- don in 1845 and expanded into the United States in 1890. It merged with Haskins & Sells to form Deloitte Haskins & Sells in 1972 and with Tou- che Ross in the US to form Deloitte & Touche in 1989. In 1993, the international firm was renamed Deloitte Touche Tohmatsu, later abbreviated to Deloitte. In 2002, Arthur

Andersen’s practice in the

UK, Europe, North and South America agreed to merge with Deloitte. Subsequent acquisitions have included Monitor

Group, a large strategy con- sulting business in 2013.

Audit

Audit provides the organiza- tion’s traditional accounting and audit services, as well as internal auditing, IT conttol assurance and Media & Adver- tising Assurance. In 2018, its audit business grew by 7.7 % .

Investors in Guangdong Kelon Electrical Holdings Company Limited have claimed that there was a failure to alert them to the company’s poor financial position. Deloitte claims it did a good job on the project. Deloitte’s global CEO defended the firm’s work on theKelonmatter.Thefirmwas the auditor for thirty months from 2002 to 2004. It quali- fied its opinion in 2004 as to company sales, returns, and allowances. The firm resigned from the Kelon account after completing the 2004 audit. Deloitte said it resigned from the account because management at the client was not committed to best practices in finance. Controversies involv- ing the firm, in addition to litigation surrounding a few of its audits, have included its involvement in a “poten- tially misleading” report on illicit tobacco trading in Aus- tralia, the fact that it suffered

a major cyber-attack which breached client confidential- ity, as well as exposing extensive employee information in

September 2017, its role as internal auditor of the insolvent contractor Carillion and its role as external auditor of Autonomy which was accused of “accounting improprieties” that contributed to an £8.8 billion write-down of value following its acquisition by

Hewlett-Packard in 2011.

depletion n {about natural resources} 1) the act or process of depleting;

2) the state of being depleted; exhaustion;

3) the use or consumption of a resource, especially a natu- ral resource, faster than it is replenished

deposit n 1) Bank & FIN a/ an instance of entrusting money or valuables to a bank or simi- lar institution;

b/ the money or valuables so entrusted;

2) money given in part pay- ment or as security, as when goods are bought on hire-pur- chase; Vid a. down payment;

3) a consideration, esp. money, given temporarily as security against loss of or dam-

age to something borrowed or hired;

4) any deposited material, such as a sediment or a pre- cipitate that has settled out of solution;

5) a depository or storehouse

deposit v 1) to put or set down, esp. carefully or in a proper place; place;

2) to entrust for safekeeping; consign;

3) to place (money) in a bank or similar institution in order to earn interest or for safe- keeping;

4) to give (money) in part payment or as security

depositor n a person who has deposited money in a bank or similar institution

depreciation n {relating to tangible assets} 1) ACCT a/ the reduction in value of a fixed asset due to use, obso- lescence, etc.;

b/ the amount deducted from gross profit to allow for such reduction in value;

2) a modified amount permit- ted for purposes of tax deduc- tion;

3) the act or an instance of depreciating or belittling; dis- paragement;

4) a decrease in the exchange value of currency against gold or other currencies brought about by excess supply of that currency under conditions of fluctuating exchange rates; cf. devaluation n

devaluation n 1) the reduc- tion or underestimation of the worth or importance of some- thing;

2) Econ. the reduction in the official value of a currency in relation to other currencies

disclaimer, Disclaimer n or Disclaimer of Opinion noun phrase Vid disclaimer of opinion report noun phrase

disclaimer of opinion report, Disclaimer of Opinion report noun phrase A Disclaim- er of Opinion, commonly referred to simply as a Dis- claimer, is issued when the auditor could not form, and consequently refuses to pres- ent, an opinion on the finan- cial statements. This type of report is issued when the auditor tried to audit an entity but could not complete the work due to various reasons and does not issue an opinion. The disclaimer of opinion report can be traced back to 1949,

when the Statement on Au- diting Procedure No. 23: Recommendation Made To Clarify Accountant’s Representations When Opinion Is Not Expressed was published in order to provide guidance to auditors in presenting a disclaimer.

Statements on Auditing Standards (SAS) provide certain situations where a disclaimer of opinion may be appropriate.

disposable goods noun pl. used as sing. goods designed to be thrown away after it has been used

dividend n 1) FIN a/ a distri- bution from the net profits of a company to its shareholders; b/ a pro-rata portion of this distribution received by a shareholder;

2) the share of a cooperative society’s surplus allocated at the end of a period to mem- bers;

3) Ins. a sum of money dis- tributed from a company’s net profits to the holders of cer- tain policies;

4) something extra; bonus;

5) Math. a number or quantity to be divided by another num- ber or quantity; cf. divisor n;

6) L the proportion of an insolvent estate payable to the creditors

documentation n 1) official documents, reports, etc. that are used to prove that some- thing is true or correct;

2) the act of recording infor- mation in writing, on film, etc.: a careful documentation of the costs

donation n a gift to a fund or cause, typically for charitable reasons; it may take various forms, including cash, services, clothing, toys, food, accommodation, blood, new or used items. Charitable gifts of goods or services are also called gifts in kind.

double-entry bookkeeping method, the it means that each financial transaction af- fects at least two sub-ledger accounts, and each entry has one debit and one credit transaction.

down payment, downpayment n a term used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount

due and it is usually given in cash at the time of finalizing the transaction. a loan is then required to make the full pay- ment.

Commentary

The main purpose of a down payment is to ensure that the lending institution can recover the balance due on the loan in the event that the borrower defaults. In real estate, the asset is used as collateral in order to secure the loan against default. If the borrower fails to repay the loan, the lender is legally entitled to sell the asset and retain a portion of the proceeds sufficient to cov- er the original amount of the loan.

By requiring a down payment in advance, the lender greatly increases the chance that any such future sale would be able to cover the full amount of the loan, because such a sale only requires the lender to recover the difference between the original selling price and the amount of the down payment, as opposed to the entirety of the original selling price.

If the borrower is unable to pay off the loan in its entirety, he/she forfeits the down payment amount.

Dr. abbrev. debit n Vid debit & credit n

dues n pl., sometimes sing. charges, as for membership of a club or organization; fees: trade-union dues

dummy n pl. dummies 1) an object that is made to look like a tool, weapon, vehicle, etc. but which you cannot use;

2) esp. AmE infml someone who is stupid;

3) someone who has no expe- rience in a skill, subject, or ac- tivity: “Auditing for Dummies” by Maire Loughran succeeded in presenting audit in the simplest picture for someone who aspires to learn what auditing is all about.

duty n pl. duties 1) something that you have to do because

it is morally or legally right; syn.: obligation n;

2) us.pl. something you have to do as part of your job;

3) Bus./ Com./T a/ a tax you payonsomethingyoubuy;b/a government tax, esp. on im- ports : the duty on something

| customs duty noun phrase (=a tax paid on goods coming into the country) | stamp duty noun phrase BrE (=a tax that must be paid in Britain on particular legal documents that have to be officially checked, esp. when buying a house)

duty-free n something that you can bring into a country with- out having to pay tax on them

duty-free adj duty-free goods can be brought into a country without having to pay tax on them

earnings n pl. syn.: emolument; gross pay; income; net pay; pay; proceeds; receipts; remuneration; return; revenue; reward; salary; stipend; takings; take-home pay; wages 1) the excess of revenues over out- lays in a given period of time

(including depreciation and other non-cash expenses);

2) something that remunerates:

Wages were paid by check. | He wasted his pay on drink. | They saved a quarter of all their earn- ings. | He was satisfied with his earnings as an auditor.

ECA abbrev. Vid European Court of Auditors, the

economic entity noun phrase syn.: market participant; transactor a producer or sup- plier of a marketable good or service

economic rent noun phrase

Vid rent n

EDP audit(s) noun phrase sing. & pl. Vid electronic data processing audit(s) noun phrase sing. & pl. in: in- formation technology audit(s) noun phrase sing. & pl.

encumbrance n 1) a thing that impedes or is burdensome; hindrance;

2) LI a burden or charge upon property, such as a mortgage or lien

endowment n 1) FIN relating to funds or property donated to institutions or individuals; 2) LI payment of the face val- ue of a life insurance policy, usually at age 98–120;

3) EP a life assurance policy designed to build a capital sum at a pre-determined date;

4) mtg. a mortgage to be re- paid by an endowment policy

engagement n 1) an appoint- ment or arrangement, esp. for business or social purposes; 2) a promise, obligation, or other condition that binds; 3) a period of employment, esp. a limited period;

4) pl. financial obligations

Enterprise Risk Management (framework), the abbrev. ERM Bus. the combination of processes and methods used by the organization to identify and manage its risks in order to achieve its objectives

entry n 1) the act of recording an item, such as a commercial transaction, in a journal, ac- count, register, etc.;

2) an item recorded, as in a diary, dictionary, or account

EOP abbrev. AmE Vid Execu- tive Office of the President, the AmE

EOP abbrev. AmE Vid Office of

Management and Budget, the AmE; full name: Execu- tive Office of the President, Office of Management and

Budget, the AmE

equity n 1) L a system of juris- prudence founded on princi- ples of natural justice and fair conduct; it supplements the common law and mitigates its inflexibility, as by providing a remedy where none exists at law;

2) L an equitable right or claim equity of redemption; 3) FIN/ SE the interest of or- dinary shareholders in a com- pany;

4) FIN/ SE the market value of a debtor’s property in excess of all debts to which it is liable

ERM abbrev. Vid Enterprise

Risk Management (frame- work), the

Ernst & Young abbrev. Vid

Ernst & Young Global Limited

Ernst & Young Global Limited abbrev­ . Ernst & Young or EY a multinational professional services network with head- quarters in London, England

Commentary

Along with Deloitte, KPMG, and PricewaterhouseCoopers, EY is considered one of the

Big Four accounting firms. It primarily provides assurance

(which includes financial au- dit), tax, consulting and ad-

visory services to its clients.

EY operates in more than 150 countries around the world.

History

Ernst & Young was formed in 1989 by a merger of two ac- counting firms, Ernst & Whin- ney and Arthur Young & Co. It was named Ernst & Young until a rebranding campaign officially changed its name to EY in 2013. In 2019, EY was the seventh-largest privately owned organization in the

United States.

Audit practices

Ernst & Young has been in accounting scandals.In 2004, it was punished for forming a lucrative business arrange- ment with one of its audit clients, PeopleSoft, thus creating a conflict of interest. As a re- sult,thefirmwasbarredbythe

SEC from accepting any new publicly traded companies as audit clients for six months. In 2020 EY failed to uncover $2 million that was missing at

Wirecard AG, a German fin- tech payment processing com- pany. This resulted in a law- suit filed against EY in June

2020. An investigation by the German Parliament, Bund- estag, revealed in April 2021 that EY’s audits of defund

payments group Wirecard suffered from serious shortcom- ings over a period of years. EY also failed to identify $ 300 million in “fabricated sales” in their 2020 audit of the coffee chain Luckin Coffee Inc. and $

5 billion in “undisclosed debt” at NMC Health PLC and Finablr PLC.

estate n 1) chiefly BrE landed property, usually of consider- able size; cf. real estate;

2) the whole of one’s posses- sions, esp. all the property and debts left by one at death; 3) L the nature and extent of an owner’s rights with respect to land or other property;

4) chiefly BrE a housing development;­

5) the situation or circum- stances of one’s life: A child’s estate gives way to the adult’s estate.;

6) social position or rank, esp. of high order;

7) a major social class, such as the clergy, the nobility, or the commons, formerly possess- ing distinct political rights; 8) arch. display of wealth or power; pomp

estimate n 1) the act of evaluat- ing or appraising;

2)a tentative evaluation or rough calculation, as of worth, quantity, or size;

3)a statement of the approxi- mate cost of work to be done, such as a building project or car repairs;

4)a judgement based on one’s impressions; an opinion

estimate v 1) to calculate ap- proximately (the amount, extent, magnitude, position, or value of something);

2) to form an opinion about; evaluate: While an author is yet living we estimate his powers by his worst performance.; syn.: estimate; appraise; assess; assay; evaluate; rate

Commentary

These verbs mean to form a judgement of worth or sig- nificance.

Estimate usually implies a sub- jective and somewhat inexact judgement: It’s difficult to esti- mate the possible results in advance.

Appraise stresses expert judge- ment: He appraised the works of art.

Assess implies authoritative judgement in setting a mon- etary value on something as a basis for taxation: assessing real estate for investors

Assay refers to careful examination, esp. to chemical analy- sis of an ore: He will assay the ingot.

In extended senses appraise, assess, and assay can refer to any critical analysis: They appraised his character. | He will assess the impact of higher taxes. | assaying the idea’s merit Evaluate implies considered judgement in ascertaining val- ue: evaluating a student’s thesis for content and organization Rate involves determining the rank or grade of someone or something in relation to oth- ers: He rated the restaurant higher than any other in the city.

cost [value] an estimate of cost made when all particu- lars of the works substantially affecting the cost have been determined

estimation n 1) a document appraising the value of some- thing (as for insurance or taxation); syn.: appraisal; estimate; cf. overappraisal, overestimate, overestimation, overvaluation n — an​ apprais- al that is too high;