Audit Assurance

In: Business and Management

Submitted By BPAN
Words 1298
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Chapter 1 An Introduction to Assurance and Financial Statement Auditing * Key Term * Assurance Services (鉴证业务): Independent professional services that improve the quality of information, or its context, for decision makers. Encompasses attest services and financial statement audits * Reporting not only on the reliability and credibility of information, but also on the relevance and timelines. * Attest (声明): A service when a practitioner (从业者) is engaged to issue or does issue a report on subject matter, or an assertion about subject matter, that is the responsibility of another party. Encompasses financial statement audits. * A broader auditing service, including not only economic events or actions. * Financial statement auditing is a specialized form of an attest service * Audit evidence (审计证据): All the information used by the auditor in arriving at the conclusions on which the audit opinion is based. Audit evidence includes the information contained in the accounting records underlying the financial statements, as well as other information. * Sufficiency: The quantity of evidence the auditor obtains * Appropriateness: The quality * Relevance: Whether the evidence is relevant to the specific management assertion being test * Reliable: The diagnosticity (可诊断性) of the evidence * Audit risk: The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. * The auditor may unknowingly give a “clean” opinion (无保留意见) on financial statements that are materially misstated. * Auditing: A systematic process of (1) 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 (2) communicating the results to interested users.…...

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