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Unformatted text preview: pondence between those assertions and established criteria and communicating the results to interested users.5 A number of phrases in this deﬁnition deserve attention. The phrase “systematic process” implies that there should be a well-planned and thorough approach
for conducting an audit. This approach involves “objectively obtaining and evaluating evidence.” Two activities are involved here. The auditor must objectively
search for and evaluate the relevance and validity of evidence. While the type,
quantity, and reliability of evidence may vary between audits, the process of
obtaining and evaluating evidence makes up most of the auditor’s activities on
As our analogy between house inspection and auditing illustrates, the evidence gathered by the auditor must relate to “assertions about economic actions
and events.” The auditor compares the evidence gathered to management’s
ﬁnancial statement assertions in order to assess “the degree of correspondence
The Relationship among Auditing, Attest, and Assurance Services FIGURE 1–2 Auditing Attest Assurance 5 American Accounting...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.