Management and Organizational Studies 3363A/B Lecture Notes - Fiduciary, Financial Audit, Auditing Standards Board

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3363A/B
• Professor: Michelle Loveland

Document Summary

Auditing: a formal examination of an organization"s or individual"s accounts or financial information. Evidence: any information used by auditor to determine whether the information being audited is stated in accordance with the established criteria. Auditor must be independent, competent and non-biased. Internal auditors report directly to the audit committee to maintain independence from operations. Auditor"s report: inform readers of the degree of correspondence between information and established criteria. Accounting: recording, classifying and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. Auditing: determine whether recorded information properly reflects the economic events that occurred during the accounting period. Auditors must obtain expertise in the accumulation and interpretation of audit evidence. Publicly accountable organizations and large not-for-profit organizations are legally required to have an annual financial statement audit. Auditing has a significant effect on information risk: information upon which the business decision was made was inaccurate.