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Unformatted text preview: s. • Reasonable assurance implies some risk that a
material misstatement could be present in the financial
statements and the auditor will fail to detect it. Evidence Regarding Management
• Evidence that assists the auditor in evaluating
management’s financial statement assertions
consists of the underlying accounting data and any
additional information available to the auditor,
whether originating from the client or externally.
– Relevance – Is the information related to the specific
assertion being tested
– Reliability – Can the information be relied upon to
signal the true state of the specific assertion being
tested Types of Auditors
• External Auditors
– Can be proprietorships, general or limited liability
partnerships, or corporations
– Categorized by size, ‘Big Four’, ‘mid-tier’, regional
and local firms
– Auditors typically work in teams, partner, manager,
audit senior and staff members • Internal Auditors
• Government Auditors • Forensic Auditors Types of Audits
• Internal Control Audits • Compliance Audits
• Operational Audits
• Forensic Audits Other None Audit Services
• Tax Preparation and Planning Services • Management Advisory Services
• Compilation and Review services...
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This document was uploaded on 03/03/2014 for the course ACCT 4304 at Texas El Paso.
- Spring '14