Lecture Auditing & assurance services (5th) - Chapter 1: Auditing and...

  • 30/08/2018 05:25:00
  • 47 lượt xem
  • 0 bình luận

  • Ít hơn 1 phút để đọc

Giới thiệu

The main goals of this chapter are to: Describe the finance and investment cycle; including typical source documents and controls; give examples of tests of controls over debt and stockholders’ equity transactions and investment transactions; describe substantive procedures for finance and investment accounts.

Thông tin tài liệu

Loại file: PPT , dung lượng : , số trang : 12

Xem mẫu

Chi tiết

McGraw­Hill/Irwin Copyright © 2013 by The McGraw­Hill Companies, Inc. All rights reserved. Chapter 01 Auditing and Assurance Services “Our system of capital formation relies upon the confidence of millions of savers to invest in companies. The auditor’s opinion is critical to that trust." ­­ James R. Doty, Chairman Public Company Oversight Board (PCAOB) 1­2 Learning Objectives • Define information risk and explain how the financial statement auditing process helps to reduce this risk, thereby reducing the cost of capital for a company. • Define and contrast financial statement auditing, attestation, and assurance type services. • Describe and define the assertions that management makes about the recognition, measurement, presentation, and disclosure of the financial statements and explain why auditors use them as the focal point of the audit. • Define professional skepticism and explain its key characteristics. • Describe the organization of public accounting firms and identify the various services that they offer. • Describe the audits and auditors in governmental, internal, and operational auditing. • List and explain the requirements for becoming a certified information professional. 1­3 User Demand for Reliable Information • Today’s information – More complex – Demanded by remote users – Demanded in a more timely manner – Has far reaching consequences • Information risk – The risk that the information disseminated by a company will be materially false or misleading. – Users demand an independent third party assessment of the information • Business risk – The risk that an entity will fail to meet its stated business objectives 1­4 Sarbanes­Oxley Act of 2002 Management’s Responsibility For Financial Reporting • One of its most important provisions clearly indicates that the management team is responsible for the financial reporting process and the financial statements. • In fact, Section 302 of the Act states that the key company officials must certify the financial statements. That is, the company CEO and CFO must sign a statement indicating: 1. They have read the financial statements. 2. They are not aware of any false or misleading statements (or any key omitted disclosures). 3. They believe that the financial statements present an accurate picture of the company’s financial condition. Source: U.S. Congress, Sarbanes­Oxley Act of 2002, Pub. L. 107­204, 116 Stat/ 745 (2002). 1­5 ... - tailieumienphi.vn


Xem thêm
Thông tin phản hồi của bạn
Hủy bỏ