ACTG 4600 Chapter Notes - Chapter 1: Internal Control, Bookkeeping, Financial Statement
28 Dec 2017
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Document Summary
Actg 4600: chapter 1 introduction to auditing. The essentials of auditing, public practice, and professional responsibilities. Auditing: verification of info by someone other than the one providing that info. Three-party accountability relationship: one party has to rely on the actions and info provided by another party, who may not share the same interests. Management provides the f/s; auditors audit them; cannot have management audit because they will not be objective about their examination. Audit societies: economic activities are extensively monitored to ensure market efficiency, auditors also monitor the effectiveness and efficiency of government. A simple illustration of the importance of auditing. Auditor acts in the best interest of the f/s users: users expect not to be misled, acting in the public interest. Third party accountability also distinguishes the type of services that only certified or licensed practitioners can provide: ex. tax work and advisory services.
