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  • Auditing

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    kanishka
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    The document discusses the key elements of an audit. It explains that an audit involves a systematic process following logical steps. It involves three parties - shareholders, managers, and auditors. The auditors provide assurance on a specific subject matter for the entity, such as financial data, systems, or processes. The auditors collect evidence, such as financial and non-financial data, and evaluate it against established criteria like accounting standards. Ultimately, the auditors express a professional opinion providing reasonable assurance about the entity's financial statements.

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    Auditing (1)

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    The document discusses the key elements of an audit. It explains that an audit involves a systematic process following logical steps. It involves three parties - shareholders, managers, and auditors. The auditors provide assurance on a specific subject matter for the entity, such as financial data, systems, or processes. The auditors collect evidence, such as financial and non-financial data, and evaluate it against established criteria like accounting standards. Ultimately, the auditors express a professional opinion providing reasonable assurance about the entity's financial statements.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    16 views73 pages

    Auditing

    Uploaded by

    kanishka
    The document discusses the key elements of an audit. It explains that an audit involves a systematic process following logical steps. It involves three parties - shareholders, managers, and auditors. The auditors provide assurance on a specific subject matter for the entity, such as financial data, systems, or processes. The auditors collect evidence, such as financial and non-financial data, and evaluate it against established criteria like accounting standards. Ultimately, the auditors express a professional opinion providing reasonable assurance about the entity's financial statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 73

     Systematic process

     Three-party
    relationship
     Subject matter
     Evidence
     Established criteria
     Opinion
    1. Systematic Process
    Auditing is a systematic and scientific process that follows
    a sequence of activities, which are logical, structured, and
    organized.

    2. Three-party Relationship
    The audit process involves three parties: shareholders,
    managers, and auditors.

    3. Subject Matter
    Auditors give assurance on a specific subject matter.
    However, the subject matter may differ considerably, such
    as – data, systems or processes, and behavior.
    4. Evidence
    The auditing process requires collecting the evidence, that
    is, financial and non-financial data, and examining thereof.

    5. Established Criteria
    The evidence must be evaluated regarding established
    criteria, which include International Accounting Standards,
    International Financial Reporting Standards, Generally
    Accepted Accounting Principles, industry practices, etc.

    6. Opinion
    The auditor has to express an honest and professional
    opinion as to the reasonable assurance of the entity’s
    financial statements.

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