ACCG340 Study Guide - Final Guide: Audit Evidence, Wu Xing, Australia Iv
19 Jun 2018
School
Department
Course
Professor
1"
"
WK 1
Auditing & Assurance
1. Differences
Accounting
• provides
financial information
for
§ decision making
§ control
§ accountability
Assurance
• Provides confidence as to
reliability
of provided information
• Various levels (reasonable, limited) depending on nature and extent of
procedures and objectivity of evidence
Auditing
•
Provides (reasonable, never absolute level) assurance
that accounting
information is
§ relevant
§ reliable
§ comparable
§ understandable
§ conveys a true and fair view
2. Definition & elements of an assurance engagement (audit engagement)
a) ‘engagement in which an assurance practitioner expresses a conclusion designed to
enhance the degree of confidence of the intended users, other than the responsible
party, about the outcome of the evaluation or measurement of a subject matter against
criteria’
b)
Five elements
1.
Three-party
relationship involving assurance practitioner, responsible party
= client, and intended users
2. Subject matter – financial information itself
3. Suitable criteria
4. Sufficient appropriate evidence – quantity & quality of information
5. Written assurance report – auditor report
3. Definition of Auditing
a) Service to provide
reasonable
(i.e. high level) assurance through issue of an opinion
about an accountability matter (such as a financial report).
b) The focus of this unit is predominantly on the audit of the general purpose financial
report, although we will examine other assurance services in the latter portion of
the course.
2"
"
4. Assurance Framework
5. Australian Auditing Standards (ASAs)
)
