You are about to embark on a journey of
understanding how auditors work to keep the
capital markets safe and secure for the investing
public. You should know that students demonstrate
success in the auditing course quite differently
than they do in other accounting courses. For
example, when taking financial accounting,
students typically demonstrate success by
correctly identifying the proper journal entry for a
given set of facts and circumstances. In auditing,
success is typically demonstrated by completing
multiple choice and short answer questions based
on the professional standards that regulate the
auditing process. Overall, this book provides you
with a comprehensive set of materials that will
allow you to master these professional auditing
standards. Chapter 1 provides an introduction to
the auditing and assurance profession.
Define information risk and explain how
the financial statement auditing process
helps to reduce this risk, thereby reducing
the cost of capital for a company.
Define and contrast financial statement auditing, attestation, and assurance type services.
Describe and define the assertions
that management makes about the
recognition, measurement, presentation,
and disclosure of the financial
statements and explain why auditors use
them as the focal point of the audit.
Define professional skepticism and
explain its key characteristics.
Describe the organization of public
accounting firms and identify the various
services that they offer.
Describe the audits and auditors in
governmental, internal, and operational
List and explain the requirements for
becoming a certified information professional.