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Category: Business and Industry
Date Submitted: 11/07/2013 08:59 AM
Chapter 1
AN INTRODUCTION TO AUDITING AND ASSURANCE
Learning objectives
After studying this chapter, you should be able to: 1 Discuss the influence of environmental factors on the auditor’s role in the capital market economy. 2 Evaluate developments in auditing and explain the economic intuitions behind assurance services. 3 Give an overview of the theoretical reflections and philosophy of auditing. 4 Outline the features of auditing as a scientific discipline. 5 State the effect of recent changes proposed by regulatory bodies on the auditor’s role. 6 Know what assurance services are, define their different types and understand why they are important. 7 Explain the nature and objectives of attestation services performed by public accountants. 8 Contrast assurance services and other professional services, including financial-statement audits and non-assurance services provided by independent auditors. 9 Define the conditions that distinguish an attest engagement from other services. 10 Know historical and anticipated future developments related to assurance services.
CHAPTER 1
AN INTRODUCTION TO AUDITING AND ASSURANCE
Introduction
This chapter gives prominence to the conceptual development of auditing over the past decades. It outlines some reflections on auditing as a discipline rather than discussing only the practices of auditing. It also discusses the features of assurance services. Because of the importance of theoretical aspects and the need for a new perspective in auditing, this introductory chapter starts by discussing auditing as a field of knowledge and its philosophy. Some readers may prefer a discussion of practical notions of auditing as the starting point, this book puts the theory and philosophy first because they are, after all, the foundations of audit practices. The objective is not to simply add to the great store of information about audit practices, but to understand and explain them and hopefully predict the road ahead. This...