Acct 4420 Chapter 1 new

Acct 4420 Chapter 1 new - To interested USERS Chapter 1...

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Acct 4420 Chapter 1 Auditing: Integral to the Economy
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Interrelationship of services Assurance Engagements Any Information Attestation Engagements Primarily Financial Information Auditing Financial Statements Chapter 1 page 2
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Overview of Financial Statement Audit Assurer Company Management Or Audit Committee Users of Financial Statements Financial Statements Audit Report Audit Report Management Report on internal controls Auditors Report on internal controls Chapter 1 page 3
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Auditing is defined as: 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. (From A Statement of Basic Auditing Concepts, 1973) Chapter 1 page 4
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Another view of the definition of auditing: Auditor obtains and evaluates evidence to ascertain correspondence between and assertions about economic data established criteria communicates results
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Unformatted text preview: To interested USERS Chapter 1 page 5 Key Phrases in this definition: Systematic process Objectively obtaining and evaluating evidence Assertions about economic actions and events Existence or Occurrence Completeness Rights and Obligations Valuation or Allocation Presentation and Disclosure Degree of correspondence between assertions and established criteria Communicating results to interested users Chapter 1 page 6 Limitations of Audits An audit does not provide absolute (or 100%) assurance that the financial statements are free from material error arising from either incorrect accounting data or incorrect judgments about the selection and application of accounting principles because of: Ambiguity of GAAP Materiality Timeliness / Cost Form of Communication Chapter 1 page 7 The End! Chapter 1 page 8...
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This note was uploaded on 09/20/2011 for the course ACCT 4420 taught by Professor Franz during the Spring '11 term at Toledo.

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Acct 4420 Chapter 1 new - To interested USERS Chapter 1...

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