Cancel Save settings. Home Contact us Help Free delivery worldwide. Free delivery worldwide. Bestselling Series. Add to Wish List. While continuing to provide students with the theoretical concepts they need to succeed, this edition features more practical examples and real-world applications … Learn More. Learn More. Written in a clear and understandablemanner, it is particularly appropriate for students who have had limited or noaudit experience.
The approach is to… Learn More. Students are provided with a solid theoretical grounding in all aspects of auditing as well as insight into current chal… Learn More. The sixth edition, revised, has been updated to incorporate recent amendments to the auditing standards and ASIC regulations. Strawser, Jay C. It reviews the two different types of assurance: reasonable assurance engagements an audit and limited assurance engagements a review.
This synopsis of audits and reviews will be useful for students to compare and contrast. This section also outlines the difference between attestation and direct engagements. Students, who are the future of the auditing profession, are expected to be instilled with these principles and adhere to them when working in the profession.
It is important that students have a basic understanding of the agency relationship that leads to auditing. These include recommendations to improve efficiency and effectiveness and a positive influence on the behaviour of people with audited entities. The expectation gap and the information gap Exposing students to the expectation gaps that can occur and where expectation gaps commonly occur at an early stage of the course usually encourages them to be more critical in their thinking as they proceed through the course.
A diagrammatic representation of the expectation gap is provided in Figure 1. The implications of this should be briefly introduced. This section takes the students through their other uses. These assurance services are discussed in more detail later in the course, so this should be no more than a very brief introduction. The Framework for Assurance Engagements International Framework for Assurance Engagements identifies the following five elements of an assurance engagement: 1.
For example, management is responsible for the preparation of the financial report or the implementation and operation of internal control.
Suitable underlying criteria, such as the standards or benchmarks used to measure and evaluate the underlying subject matter of an assurance engagement. Criteria are important in the reporting of a conclusion by an assurance practitioner as they establish and convey to the intended user the basis on which the conclusion has been formed. The Framework says that a practitioner can provide two levels of assurance for an assurance engagement: reasonable assurance and limited assurance.
For assurance services on historical financial information, a reasonable assurance engagement is commonly termed an audit, and a limited assurance engagement is commonly termed a review. The objective of a reasonable assurance engagement audit is reducing assurance engagement risk to an acceptably low level, and this is associated with a positively expressed assurance opinion such as that the financial information is true and fair. An attestation engagement requires a party other than the auditor to measure or evaluate the underlying subject matter against the criteria.
The audit of a generalpurpose financial report is an example of an attestation engagement. A direct engagement requires the auditor to directly measure or evaluate the underlying subject matter against the criteria. Where management does not measure or evaluate the adequacy of internal control, and therefore the auditor is required to report directly on its adequacy, the engagement is classed as a direct engagement. If, however, management has measured or evaluated the adequacy of internal control and the auditor is required to attest to this statement, it is an attestation engagement.
ASA Knowledge: The auditor should possess a sufficient understanding of the entity and its environment to appropriately plan and perform the audit, interpret audit findings and report on the financial report. Rigour and scepticism: The auditor should plan and perform an audit with thoroughness and with an attitude of professional scepticism, critically assessing with a questioning mind the validity and reliability of evidence, and recognising circumstances that may cause the financial report to be materially misstated.
Evidence: The auditor should obtain sufficient appropriate evidence to constitute a reasonable basis for expressing an opinion on the financial report. Reporting: The auditor should report to those who have appointed the auditor to the engagement. Relevance: This requires that the information provided must be useful in assisting financial report users to make and evaluate decisions about the allocation of scarce resources and to assess the accountability of the preparers of these reports.
Faithful representation: The extent to which the information presented to users represents, without bias or undue error, the underlying transactions and events that have occurred. Some features of WorldCat will not be available. Create lists, bibliographies and reviews: or. Search WorldCat Find items in libraries near you. Advanced Search Find a Library.