Chapter 1 Powerpoint

Chapter 1 Powerpoint - Chapter 1 Auditing and Assurance...

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Unformatted text preview: Chapter 1 Auditing and Assurance Services "If you want to be successful, it's just this simple: Know what you're doing. Love what you're doing. And believe in what you're doing." -- Will Rogers 1-1 Chapter 1 Objectives 1. Define information risk and explain how auditing and assurance services play a role in reducing this business risk. 2. Define and contrast auditing , attestation , and assurance services . 3. Describe and define the management assertions embodied in financial statements and explain why auditors use them as a focal point of the audit. 4. Explain some characteristics of professional skepticism. 5. Describe the organization of public accounting firms and identify the various services they offer. 6. Describe the audits and auditors in governmental, internal, and operational auditing. 7. List and explain the requirements for becoming a certified information professional. 1-2 User Demand for Reliable Information Todays information More complex Demanded by remote users Demanded in a more timely manner Has far reaching consequences Information risk the risk (probability) that the information (mainly financial) disseminated by a company will be materially false or misleading. users demand an independent third party assessment of the information 1-3 Risk of Error In Information High Volumes of Data Dispersion of Data Accumulation Globally Complex and Constantly Changing Accounting Rules Volatile Changes in Economic Markets Debate on Timeliness vs Quality of Information The Relationships Among Auditing, Attestation, and Assurance Engagements Assurance Services Any Information Attestation Services Primarily Financial Information Auditing Financial Statements 1-5 Assurance Services Assurance services are independent professional services that improve the quality of information, or its context, for decision makers. Examples Consumer reports Underwriters laboratories CPA WebTrust Assistance with XBRL reporting 1-6 Attestation Engagements An attestation engagement- a practitioner is assesses and reports on subject matter or an assertion about the subject matter that is the responsibility of another party . Some financial attestation engagements (other than audits) Supplementary financial statistics Pro forma financial information Financial forecasts and projections Some non-financial attestation engagements Compliance with contractual requirements Effectiveness of internal control systems Inventory quantities and locations 1-7 An Audit What is it really? What is an Auditor? Does every Company need or want an audit? Who Benefits From an Audit?...
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Chapter 1 Powerpoint - Chapter 1 Auditing and Assurance...

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