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Unformatted text preview: hotos. Finally, he did some calculations based on average
bovine birth and death rates, taking into account recorded purchases and sales of
livestock during the year. Using this combination of procedures, the auditor was
able to obtain persuasive evidence supporting management’s assertion regarding
inventory (and got an airplane ride in the process).
We hope this example helps illustrate why you will need to approach the
study of auditing differently from that of most other accounting courses. As you
learn the concepts and techniques of auditing, you are not only acquiring the
tools to become an effective ﬁnancial statement auditor but also a conceptual
tool kit that can be useful to you in many different settings and contexts. 26/05/11 9:24 PM Conﬁrming Pages 26 Part 1 Introduction to Assurance and Financial Statement Auditing K EY TERMS
Assurance services. Independent professional services that improve the quality
of information, or its context, for decision makers. Encompasses attest...
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