BUS 426 Chapter Notes - Chapter 1: Financial Statement, Canada Revenue Agency, Internal Control

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Michael Favere- Marchesi

Document Summary

Auditing: 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. Accounting is the recording, classifying and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. Auditing is making sure the accounting information is fairly stated. Information risk: the risk that information upon which a business decision is made inaccurately; ex: inaccurate financial statements. Assurance engagement: a service where a written communication is provided expressing an opinion about the reliability of an assertion (claim, ex: financial statement figures) made by another party; also called assurance services . Assurance services component: attestation service: the auditor issues a report about the reliability of any information provided by one party to another (think of it as a small audit/review as supposed to a formal audit) Attestation on internal control over financial reporting.