Professional Documents
Culture Documents
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Part One
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Chapter 1
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Why do organizations request an audit? It allows contracting to take place in an agency relationship Evidence supporting a demand for auditing without regulation: Early Greece Extensive non-regulated audit
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AUDITING (broadly defined) is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested parties. AUDITING (narrowly defined) is a written report on the examinations of financial statements for a client.
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ATTESTATION occurs when a practitioner is engaged to issue or does issue a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party. Examples: The effectiveness of internal control Financial information other than the financial statements Future-oriented financial information Compliance with statutory, regulatory, or contractual obligations Managements discussion and analysis
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ASSURANCE services are independent professional services that improve the quality of information, or its context, for decision makers. Examples: Risk assessment Information system reliability Electronic commerce Health care performance measurement
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Auditing
Attestation
Assurance
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TYPES OF AUDITS
Financial statements audits Compliance audits Operational audits Comprehensive audits Forensic audits
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TYPES OF AUDITORS
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Public accounting firms Types of services Audits Tax services Management advisory services Accounting and review services
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