Audit Theory

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  Audit Theory By William Sucuahi, CPA   Learning Objective  Explains why there is demand for auditing  Defines the three fundamental concept of a financial statement audit  Recognizes the sets of management assertions that are implicit in a business entity’s financial statements  Explains the financial statement auditing process  Auditing vs Accounting   Accounting focus on learning the rules, techniques, and computations required to prepare and analyze financial information   Auditing focuses on learning the analytical and logical skills necessary to evaluate the relevance and reliability of the systems and processes responsible for recording and summarizing the information, as well as of the information itself.  Why do companies request an audit?  Analogy: Case of Auto Mechanic Car Seller Car Buyer Car Mechanic
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