[ACCO 450] - Final Exam Guide - Ultimate 36 pages long Study Guide!
29 Nov 2016
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Auditing: verification of info by someone other than the one providing it. Accumulation and evaluation of evidence about info. Role: critical in early 21st century, reduce risk of decision made on inaccurate info. Objective of statement audits: express opinion on whether f/s are prepared in all material respects to the applicable reporting framework (aspe, gaap, ifrs) Manager preps statements, auditor gives audit report about statements. Client is the one who pays for the audit. Expectation gap: diff between what public expects from auditors and what auditors really provide (detect and correct all errors and fraud vs reasonable assurance that f/s are free from material errors) Objective of the audit: make users more confident in the statements. Done by seeing auditor"s opinion that they"re prepared, in all material respects, in accordance with a financial framework (usually gaap). Business risk: conditions or actions that might negatively affect company"s ability to meet its goals and perform its strategies.
