The Audit Function An Overview Attestation Auditing Defined

The Audit Function -An Overview (Attestation)

Auditing Defined #1 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 users. Auditing Concepts Committee, American Accounting Association, “Report of the Committee on Basic Auditing Concepts, ” The Accounting Review,

Auditing Defined #2 The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent independent person. Arens & Loebbecke, Auditing, An Integrated Approach 7 th Edition - Prentice Hall, 1997.

Generally Accepted Auditing Standards n General Standards • Competency (Training and proficiency) –In criteria –In obtaining and evaluating evidence –In reporting • Independence • Due care

Generally Accepted Auditing Standards Plan n Fieldwork Standards • Planning and supervision • Internal control structure • Sufficient, competent evidence

Generally Accepted Auditing Standards n Reporting Standards • Existing criteria (e. g. generally accepted accounting principles) • Inconsistency • Inadequate disclosure • Expression of Opinion

Other Types of Audits n Compliance Audits • Financial Audits • Performance Audits n Internal Audits n Operational Audits

Types of Audit Reports Correspondence YES, but. . . NO DON’T KNOW

Types of Audit Reports Correspondenc e YES n Unqualified Opinion • Standard Report • Modified Report YES, but. . . n Qualified Opinion • Scope Qualification • GAAP Departure Qualification NO n Adverse Opinion DON’T KNOW n Disclaimer of Opinion