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 Accounting Review,
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
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
Corresponde
nce
YES
YES, but...
NO
DON’T KNOW
Types of
Audit Reports
Correspond
ence
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
0
