ADM 3349 Lecture Notes - Lecture 1: Financial Audit, Accountant, Internal Audit
12 Apr 2016
School
Department
Course
Professor
Document Summary
Audiing is criical to the proper funcioning of capital markets, and if audits are perceived to fail, then capital markets can do the same. Without efecive audits, modern capital markets cannot fulill their roles as eicient economic systems leading to high living standards. Audiing: the veriicaion of informaion by someone other than the one providing it. Generally accepted accouning principles (gaap): those accouning methods that have been established in a paricular jurisdicion by formal recogniion by a standard-seing body, or by authoritaive support or precedent such as the accouning recommendaions of the cica handbook. Auditors increase the reliability, or reduce the risk, of using inaccurate informaion in decision-making. Three-party accountability: an accountability relaionship in which there are three disinct paries (individuals): an asserter, an assurer, and a user of the asserted informaion. Accountability relaionship: a relaionship in which at least one of the paries needs to be able to jusify its acions or claims to another party in the relaionship.
