The Philosophy of Auditing - Lecture 1

Question 1

Auditing definition

Answer 1

An independent examination of and the subsequent expression of opinion on the financial statements of an organisation

Question 2

Why is there a demand for auditing?

Answer 2

.Statutory requirement
.Can owners trust the reports of their managers
.Add credibility to the reports

Question 3

Auditing is not about new information, but rather….

Answer 3

.Giving credibility
.Verifying
.Giving confidence
.Protecting public interest
.Giving legitimacy