Professional Documents
Culture Documents
System Audit
System Audit
System Audit
Learning Outcomes:
At the end of the session, the students should be
able to:
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An Integrated Audit
Exhibit 1-1
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A Definition of Auditing
Auditing is a systematic process of
objectively obtaining and evaluating evidence
regarding assertions about economic actions
and events to ascertain the degree of
correspondence between these assertions and
established criteria and communicating the
results to interested users.
American Accounting Association, Committee on Basic Auditing Concepts, A Statement of Basic Auditing
Concepts
(Sarasota, FL: American Accounting Association, 1973)
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• Compliance audit
• Tax Audit
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BeneficiariesExhibit
of Audits
1-3
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Value of an Audit
• To society: capital markets benefit
• To owners and prospective owners: remote ownership,
complex transactions, investment decisions
• To corporate governance, the Board of Directors and audit
committee: representing shareholders’ interests
• To management
• running the company with good information
• cost of and access to capital
• operating efficiency and effectiveness
• credibility of performance indicators
• properly accounting for complex transactions
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Value of an Audit
• Constituents: society, owners and prospective
owners, corporate governance, management
• All of these constituents need good
information. Even nonpublic companies elect
to have audits, although they are not required
to do so by any law or regulation.
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• Operational Auditing
• Forensic Accounting
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• Attest engagements
•Assurance engagements
•Tax engagements
• Accounting and bookkeeping
• Business advising/management
consulting
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Firm Sizes
• Big Four
• Small local
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• Manager
• In Charge Accountant
• Staff Accountant
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