The Audit Function -An Overview (Attestation)

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The Audit Function -An Overview (Attestation)

Auditing Defined #1 A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. Auditing Concepts Committee,American Accounting Association, “Report of the Committee on Basic Auditing Concepts,” The

Auditing Defined #2 The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent independent person. Arens & Loebbecke, Auditing, An Integrated Approach 7th Edition - Prentice Hall, 1997.

Generally Accepted Auditing Standards General Standards Competency (Training and proficiency) –In criteria –In obtaining and evaluating evidence –In reporting Independence Due care

Generally Accepted Auditing Standards Plan Fieldwork Standards Planning and supervision Internal control structure Sufficient, competent evidence

Generally Accepted Auditing Standards Reporting Standards Existing criteria (e.g. generally accepted accounting principles) Inconsistency Inadequate disclosure Expression of Opinion

Other Types of Audits Compliance Audits Financial Audits Performance Audits Internal Audits Operational Audits

Types of Audit Reports Correspond ence YES YES, but. NO DON’T KNOW

Types of Audit Reports Corresponde nce YES Unqualified Opinion Standard Report Modified Report YES, but. Qualified Opinion Scope Qualification GAAP Departure Qualification NO Adverse Opinion DON’T KNOW Disclaimer of Opinion

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