Management and Organizational Studies 3363A/B Chapter Notes - Chapter 1: Audit Evidence, Internal Audit, American Institute Of Certified Public Accountants
6 Dec 2018
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Chapter 1 the demand for audit and other assurance services. Nature and relevance of auditing: auditing a formal examination of an organization"s or individuals accounts or financial information. It is an accumulation and evaluation of evidence to determine and report on the degree of correspondence between the information and established criteria: auditing is done by a competent, independent person. 5 key components of auditing: information, criteria, evidence gathering and evaluation, performed by a competent, independent person, report. Information: must be verifiable (is there evidence to support the information?) Criteria: based on either ifrs or aspe. Independence in mind the auditor"s ability to exercise objectivity. Independent auditors public accountants or accounting firms that perform audits. Internal auditors auditors employed by the company. Report: the final stage of the audit process is preparing the report, this is the communication of audit findings to users. Auditing v. accounting: accounting the recording, classification, and summarizing of economic events.
