Chap 1 Notes_Part_7

Chap 1 Notes_Part_7 - improving accuracy and reducing bias...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Comparison with other Professions Doctor Lawyer Auditor Patient Client Client Germ Opponent Public
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Value of an Audit Enhance Credibility of Clients’ Financial Statements Reality: P(material misstatement (MM)) > 0; P(Detecting MM|MM) < 1 Audit Value = P(Reporting MM|Detected MM)*P(Detecting MM)>0 P(Detecting MM|MM) = f(competence, work effort, nature of subject matter, shrewdness) P(Reporting MM|Detected MM) = f(independence)
Background image of page 2
Value of an Audit enhance credibility of clients’ financial statements by
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: improving accuracy and reducing bias detect and deter fraud management’s need for reliable information provide insurance contracts based on accounting numbers stewardship management's ability to use assets to generate profits Management’s ability to maintain asset base satisfy SEC, PCAOB, and stock exchanges consulting, tax, IC evaluation, systems evaluation...
View Full Document

This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

Page1 / 3

Chap 1 Notes_Part_7 - improving accuracy and reducing bias...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online