ACC 521 Chapter Notes - Chapter 1: American Accounting Association, External Auditor, Audit Risk
13 Mar 2014
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Chapter 1: introduction to auditing: without effective audits, modern capital markets cannot fulfill their roles as efficient economic systems leading to high living standards. Audit societies: societies in which there is extensive examination by auditors of economics and other politically important activates (michael power) In audit societies, economic activities are monitored to ensure market efficiency. In societies, auditors also monitor the effectiveness and efficiency of government. Auditing: the verification of information by someone other than the one providing it. A simple illustration of the importance of auditing. If third party feels information risk is too high, the second party will provide you with independent verification. Three party accountability: an accountability relationship in which there are 2 distinct parties: an. ** three party accountability is not based on who pays the fee. Accountability relationship: a relationship in which at least one of the parties needs to be able to justify its actions or claims to another party in the relationship.
