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    Auditing and Assurance Principles

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    John Francis Escayde Urlanda
    This document discusses auditing and assurance principles. It defines auditing as a systematic process of objectively obtaining and evaluating evidence according to established criteria to communicate to interested users. It describes the types of audits as financial statement, compliance, and operational audits. It also defines the types of auditors as external, internal, and government auditors. The objective and scope of a financial audit is to express an opinion on whether financial statements are fairly presented in accordance with accounting standards. Finally, it notes that while an audit provides reasonable assurance, it does not guarantee the accuracy of financial statements due to inherent limitations.

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    Auditing and Assurance Principles

    Uploaded by

    John Francis Escayde Urlanda
    48 views2 pages
    This document discusses auditing and assurance principles. It defines auditing as a systematic process of objectively obtaining and evaluating evidence according to established criteria to communicate to interested users. It describes the types of audits as financial statement, compliance, and operational audits. It also defines the types of auditors as external, internal, and government auditors. The objective and scope of a financial audit is to express an opinion on whether financial statements are fairly presented in accordance with accounting standards. Finally, it notes that while an audit provides reasonable assurance, it does not guarantee the accuracy of financial statements due to inherent limitations.

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    This document discusses auditing and assurance principles. It defines auditing as a systematic process of objectively obtaining and evaluating evidence according to established criteria to communicate to interested users. It describes the types of audits as financial statement, compliance, and operational audits. It also defines the types of auditors as external, internal, and government auditors. The objective and scope of a financial audit is to express an opinion on whether financial statements are fairly presented in accordance with accounting standards. Finally, it notes that while an audit provides reasonable assurance, it does not guarantee the accuracy of financial statements due to inherent limitations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    48 views2 pages

    Auditing and Assurance Principles

    Uploaded by

    John Francis Escayde Urlanda
    This document discusses auditing and assurance principles. It defines auditing as a systematic process of objectively obtaining and evaluating evidence according to established criteria to communicate to interested users. It describes the types of audits as financial statement, compliance, and operational audits. It also defines the types of auditors as external, internal, and government auditors. The objective and scope of a financial audit is to express an opinion on whether financial statements are fairly presented in accordance with accounting standards. Finally, it notes that while an audit provides reasonable assurance, it does not guarantee the accuracy of financial statements due to inherent limitations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Auditing and Assurance Principles

    Auditing

    (Philippine Standards on Auditing)- expressing opinions on financial statements

    - Systematic (1) process of (2) objectively obtaining and evaluating evidence with (3) criteria for
    (4) communicating to various interested users.

    1. Process
    2. Gathering Data and assertion (completeness)
    2.1 No bias (Objectively)
    2.1.1 Auditors must determine if assertions are valid
    3. In accordance with established criteria (Philippine Accounting Standards)
    4. Ultimate objective of audit; timely basis

    Types of Audits

    1. Financial Statement Audit - determines if the FS are FAIRLY presented with accordance of
    financial reporting framework.
    2. Compliance Audit - reviews if the company is compliant with rules and regulations established
    by an authoritive body.
    3. Operational Audit - measuring the performance, identify the improvements and
    RECOMMENDATIONS for the organization.

    Types of Auditors

    1. External Auditor - independent CPA that offers service in contractual basis (FS Audit)
    2. Internal Auditors - entities own employees who appraise the effectiveness and efficiency of
    operations and internal controls.
    - discharges responsibilities (Operational Audit)
    3. Government Auditors - government employees that determines whether the persons or entities
    are compliant with government laws and regulations. (Compliance Audit)

    Objective and Scope of Financial Audit

    Objective - expresses opinion on fairness and in accordance with Philippine Accounting Standard.

    Scope - dependent on ALL and RELEVANT requirement of legislation, regulations or relevant professional
    bodies that are necessary to achieve reasonable basis on opinion.

    Responsibility for the FS


    - the management are responsible for the preparation and representation of FS accordance with
    the financial reporting framework (PAS).
    - the auditors are to give opinions based on his audits on FS.
    - the audits does not relieve the management's responsibilities.
    - the management requires the implementation of adequate accounting and internal control.

    Assurance provided by the Auditor

    - the auditor's report is not a guarantee the FS are dependable.


    - the audit with accordance in PSA is to provide only a reasonable assurance
    - limitations that affect the auditor's ability to detect material misstatements
     use of testing = only samples are examined
     error in application of judgment = human errors
     reliance on management's representation = FS from managements may be lack of integrity.
     inherent limitations of the client's accounting and internal control systems = collusion
    among employees (sabwatan)
     nature of evidence = evidence does not involved hard facts.

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