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, 1971

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 DONT KNOW

Types of Audit Reports

Corresponden ce YES 

Unqualified Opinion
Standard Report Modified Report

YES, but...

Qualified Opinion
Scope Qualification GAAP Departure Qualification

NO

Adverse Opinion Disclaimer of Opinion

DONT KNOW