AUE1501 - Introduction To Auditing SUMMARY 2021

AUDITING WHAT IS AUDITING? International Framework for Assurance Engagements (which defines an assurance engagement as one “in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended user) WHAT IS AN AUDITOR? auditors of all types provide assurance pertaining to information prepared or presented by one party to another party with the intention of inspiring confidence in the �fairness� of the information which is being prepared or presented. Types of auditor registered (external) auditors: auditors who express an independent opinion on whether the annual financial statements of a company, fairly present the financial position and results of the company’s operations.  not an employee of the company.  Enhances the degree of confidence which users of the financial statements will have in the information.  Registered auditors offer their services to the public.  They are described as being “in public practice” and must be registered with the Independent Regulatory Board for Auditors (IRBA). internal auditors: auditors who perform independent assignments on behalf of the board of directors of the company.  Helps senior management to meet their responsibilities in running the organization by providing independent information about the company’s departments, divisions or subsidiaries.  Enhances management’s degree of confidence that the company’s systems are functioning as intended and that the risks are being assessed and addressed.  Thou the internal auditor is an employee of the company, he/she must be independent of the department, division or subsidiary in which the assignment is being carried out.