BU477 Chapter Notes - Chapter 1: Canada Revenue Agency, Pricewaterhousecoopers, Internal Control
Document Summary
Chapter 1: the demand for audit and other assurance services. Auditing: accumulation of evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Combination of auditor"s professional judgment and scepticism and knowledge of rules and procedures. Info in verifiable form and some standards by which auditor can evaluate information. Routine audits of quantifiable info (companies" f/s, individual"s tax returns) and subjective information (effectiveness of computer systems, efficiency of mfr operations) Criteria in which info is evaluated depends on info being audited (use ifrs as standards but. Evidence: information used by the auditor to assess whether the information being audited is stated in accordance with established criteria. Quality and amount depends on risks of material misstatement due to error or fraud. Forms of evidence: oral representation of auditee (client), written communication with outsiders, and observations by auditors. Certain evidence (from third party) more reliable than other evidence (from client)
