TAXX 301 Study Guide - Comprehensive Final Exam Guide - Financial Statement, Canada, Audit
Document Summary
Auditing- 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. To do an audit there must information in a verifiable form and some standards by which the auditor can evaluate the information. Auditors routinely perform audits of quantifiable information, including companies" financial statements and individual"s federal tax returns. Auditors also perform audits of more subjective information, such as the effectiveness of computer systems and the efficiency of manufacturing operations. Evidence- any information used by the auditor to assess whether the information being audited is stated in accordance with the established criteria. I. e. - oral representation of the client, written communication with outsiders, and observations by the auditor. Independent auditors- a public accountant or accounting firm that performs audits of commercial and non-commercial entities. Internal auditors- an auditor employed by a company to audit for the company"s.
