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Chapter 1: The Overview of Auditing

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24 views

Chapter 1: The Overview of Auditing

Uploaded by

Vencint Laran
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 1: The Overview of Auditing

Auditing Defined:
“An Audit is a Systematic Process of Objectively Obtaining and Evaluating
evidence regarding Assertions about Economic Actions and Events to
ascertain the degree of correspondence between assertions and established
criteria and Communicating the results to interested users.
The Definition Conveys the Following thoughts:
1. An Audit is a Systematic Process
- An audit involves a step by step process and structured procedures.
2. An Audit Involves Obtaining and Evaluating Evidence about Assertions
regarding Economic Actions and Events.
- Assertions are representations or stands made by a Client about an
Economic Action or Event. It is the auditor’s job to determine if these
assertions are true or not. So, the Auditor performs procedures that
allow him to obtain evidence that either support or deny those
assertions.
3. The Audit should be done Truthfully/Objectively.
- The auditor should not pick sides when evaluating Audit Evidences or in
the Formulation of Conclusions.
4. Auditors Determine the Degree of Relationship between Assertions and
Related Criteria.
- Established Criteria are the standards in which the Auditor basis his
conclusions about Assertions from their clients. The Auditor should
determine if the Assertions fit and are in accordance with the
Established Standards.
5. Auditors Communicate the Audit Results to Interested Users

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