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Representations made by an entity about economic actions and events
Assertions
Requires the auditor to make impartial assessment of all the relevant circumstances in forming a conclusion
Objectivity
These are needed to judge the validity of the assertions
Established criteria
Conducted to determine whether the financial statements of the entity are fairly presented in accordance with the applicable financial reporting framework
Financial statements audit
Involves a review of an organization's procedures to determine whether the organization has adhered to specific procedures, rules, or regulations
Compliance audit
Study of a specific unit of an organization for the purpose of measuring its performance
Operational/performance/management audit
Identify 1 of the general characteristics of the different types of audit
Systematic examination and evaluation of evidence; communication of the written results
What is the general assertion made by the auditee in a financial statements audit?
That the financial statements are fairly presented
What is the general assertion made by the auditee in a compliance audit?
That the organization has complied with laws, regulations, or contracts
What is the general assertion made by the auditee in an operational audit?
That the organization's activities are conducted effectively and efficiently
Established criteria in a financial statements audit
Financial reporting framework
Established criteria in a compliance audit
Laws, regulations, contracts
Established criteria in an operational audit
Objectives set by the board
Independent CPAs who offer their professional services to different clients on a contractual basis
External/independent auditors
Entity's own employees who investigate and appraise the effectiveness and efficiency of operations and internal controls
Internal auditors
Government employees whose main concern is to determine whether persons or entities comply with government laws and regulations
Government auditors
