Professional Documents
Culture Documents
Chapt 1
Chapt 1
Introduction to Auditing
Definition of Auditing
• Materiality
• Something is material if, in auditor’s
judgment, its omission or misstatement
would probably affect a user’s decision.
• Audit risk
• The risk that the auditor may unknowingly
provide a “clean” opinion on financial
statements that are materiality misstated.
“Presents fairly” means that this risk is at
an appropriately low level.
So, an audit opinion…
•
The PCAOB and auditing standards
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Specialised Areas
• ISA 800, Special Considerations-Audits of Financial
Statements Prepared in Accordance with Special Purpose
Frameworks
• ISA 805, Special Considerations-Audits of Single Financial
Statements and Specific Elements, Accounts or Items of a
Financial Statement
• ISA 810, Engagements to Report on Summary Financial
Statements
Ethiopian Code of Professional Accountants
issued by the Office of Federal Auditor General
• Assignment 2
• The Code recognizes that the objectives of the
accountancy profession are to work to the highest
standards of professionalism, to attain the highest
levels of performance and generally to meet the
public interest requirement set out above
• What are the basic needs
• Technical standards
• Principle of professionalism
Ethics- reading assignment
• legal requirement
“The internal audit activity must evaluate the design,
implementation, and effectiveness of the organization’s
ethics-related objectives, programs, and activities.”
• the role of Internal Auditors
Assessing, evaluating and providing assurance of
implementation, and effectiveness of the organization’s
ethics-related objectives, programs, and activities,
Consulting services, role model and ethical advocate
• understanding organizational culture
• Key Considerations
Auditing ethics
• Report the audit results without fear or favor to the audit committee
and senior management.
• Monitor and follow-up to ensure recommendations are effectively
implemented and meaningful change occurs in a timely way
Auditing Ethics – Benefits