Samenvatting (boek) Auditing

Chapter
1



Auditing
is
the
accumulation
and
evaluation
of
evidence
about
information
to

determine
and
report
on
the
degree
of
correspondence
between
the
information
and

established
criteria.
Auditing
should
be
done
by
a
competent,
independent
person.




To
do
an
audit,
there
must
be
information
in
a
verifiable
form
and
some
standards

(criteria)
by
which
the
auditor
can
evaluate
the
information.
This
information
can
take

many
forms.
Auditors
routinely
perform
audits
of
quantifiable
information,
including

companies’
financial
statements
and
individuals’
federal
income
tax
returns.
Auditors

also
audit
more
subjective
information,
such
as
the
effectiveness
of
computer
systems

and
the
efficiency
of
manufacturing
operations.




The
criteria
for
evaluating
information
also
vary
depending
on
the
information
being

audited.




For
an
audit
of
internal
control
over
financial
reporting,
the
criteria
will
be
a
recognized

framework
for
establishing
internal
control.




For
the
audit
of
tax
returns
by
the
Internal
Revenue
Service
(IRS),
the
criteria
are
found

in
the
Internal
Revenue
Code.




For
more
subjective
information,
it
is
more
difficult
to
establish
criteria.
Typically,

auditors
and
the
entities
being
audited
agree
on
the
criteria
well
before
the
audit
starts.




Evidence
is
any
information
used
by
the
auditor
to
determine
whether
the
information

being
audited
is
stated
in
accordance
with
the
established
criteria.




To
satisfy
the
purpose
of
the
audit,
auditors
must
obtain
a
sufficient
quality
and
quantity

of
evidence.
Auditors
must
determine
the
types
and
amounts
of
evidence
necessary
and

evaluate
whether
the
information
corresponds
to
the
established
criteria.




The
auditor
must
be
qualified
to
understand
the
criteria
used
and
must
be
competent
to

know
the
types
and
amount
of
evidence
to
accumulate
in
order
to
reach
the
proper

conclusion
after
examining
the
evidence.
The
auditor
must
also
have
an
independent

mental
attitude.
The
competence
of
those
performing
the
audit
is
of
little
value
if
they

are
biased
in
the
accumulation
and
evaluation
of
evidence.




Auditors
strive
to
maintain
a
high
level
of
independence
to
keep
the
confidence
of
users

relying
on
their
reports.
Auditors
reporting
on
company
financial
statements
are
often

called
independent
auditors.
Even
though
such
auditors
are
paid
fees
by
the
company,

they
are
normally
sufficiently
independent
to
conduct
audits
that
can
be
relied
on
by

users.
Even
internal
auditors
–
those
employed
by
the
companies
they
audit
–
usually

report
directly
to
top
management
and
the
board
of
directors,
keeping
the
auditors

independent
of
the
operating
units
they
audit.




The
final
stage
in
the
auditing
process
is
preparing
the
audit
report,
which

communicates
the
auditor’s
findings
to
users.
Reports
differ
in
nature,
but
all
must

inform
readers
of
the
degree
of
correspondence
between
the
information
audited
and