The Audit Function -- An Overview (Attestation)

1. The Audit Function -- An Overview (Attestation)

2. 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, 1971

3. 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.

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

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

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

7. Other Types of Audits • Compliance Audits • Financial Audits • Performance Audits • Internal Audits • Operational Audits

8. Types of Audit Reports Correspondence YES YES, but... NO DON’T KNOW

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