1. auditing should be done by a competent,independent person.
   1. Topic
2. is the accumulation n evaluation of evidence about the information to determine and report on the degree of correspondece between d the info n established criteria.
3. what is auditing?
4. accounting
   1. Topic
   2. Subtopic 2
      1. is the recording, classifying,
      2. and summarizing of economic events
      3. for the purpose of providing financial
      4. information used in decision making
5. auditing
   1. Subtopic 1
      1. is determining whether
      2. recorded information properly
      3. reflects the economic events that
      4. occurred during the accounting period.
6. attestation services
   1. Subtopic 1
      1. is a type of assurance
      2. service in which the CPA firm issues a
      3. report about the reliability of an assertion
      4. that is the responsibility of another party.
   2. hve 5 categories
      1. Topic
      2. Subtopic 2
         1. 1. Audit of historical financial statements
            1. Topic
      3. Subtopic 3
         1. 2. Attestation of internal control over financial
         2. reporting
      4. Subtopic 4
         1. 3. Review of historical financial statements
      5. Subtopic 5
         1. 4. Attestation services on information technology
      6. Subtopic 6
         1. 5. Other attestation services
7. other assurance service
   1. Subtopic 1
      1. Most of the other assurance services that CPAs
      2. provide do not meet the formal definition
      3. of attestation services.
   2. Subtopic 2
      1. The CPA is not required to issue a written report
   3. Subtopic 3
      1. The assurance does not have to be about the
      2. reliability of another party’s assertion about
      3. compliance with specified criteria.
   4. examples
      1. Subtopic 1
         1. Compliance with trading policies and procedures
      2. Subtopic 2
         1. Compliance with entertainment royalty agreements
            1. nonassurance services provided by cpa
            2. Subtopic 1
            3. 1. Accounting and bookkeeping services
            4. Subtopic 2
            5. 2. Tax services
            6. Subtopic 3
            7. 3. Management consulting services
      3. Subtopic 2
         1. ISO 900 certification
      4. Subtopic 4
         1. Environmental audit
8. eg of nonassurance services
   1. Subtopic 1
      1. Other Management
      2. Consulting
   2. Subtopic 2
      1. Management
         1. Certain
      2. Consulting
   3. tax service
   4. acc n bookkeeping
9. type of audit
   1. operational
      1. eg
         1. Subtopic 1
            1. Evaluate computerized payroll system
            2. for efficiency and effectiveness
      2. info
         1. Subtopic 1
            1. Number of records processed, costs of
            2. the department, and number of errors
      3. established criteria
         1. Subtopic 1
            1. Company standards for efficiency and
            2. effectiveness in payroll department
      4. available evidence
         1. Subtopic 1
            1. Error reports, payroll records, and
            2. payroll processing costs
   2. compliance
      1. eg
         1. Subtopic 1
            1. Determine whether bank requirements
            2. for loan continuation have been met
      2. info
         1. company records
      3. established criteria
         1. loan agreement provisions
      4. available evidence
         1. financial statement n calculation by the auditor
   3. financial statement
      1. eg
         1. annual audit of boeing's fs
      2. info
         1. boeing's fs
      3. established criteria
         1. generally accepted acc principles
      4. available evidence
         1. documents, records, n outside sources of evidence
10. type of auditor
    1. independent certifiend public acc firms
    2. gov general acc office auditors
    3. internal revenue agents
    4. internal auditors
11. 1.stewardship n agency
    1. traditional app of acc dat places an obligation on steward or agents such as-directors to provide relevant n reliable financial info relating to resources over which they hve control but which are owned by others,such as shareholders. Not only stewards responsible 4 providing info,but must also submut to an audit :)
12. 2.accumulating evidence n evaluating evidence
    1. evidence
       1. is any info used by the auditor
       2. to determine whether the info being audited is stated in accordance wit the est criteria
       3. evidence take many diff forms
          1. oral testimony
          2. written communication wit outsiders
          3. observations by auditor
          4. electronic data bout transction
13. 3.competent,indepndent person
    1. auditor must be qualified
    2. to undestand the criteria
    3. must be competent to know d types n amount of evidnce
       1. to accumulate to reach the proper conclusion after d evidence has been examined
14. 4. Eco demand 4 auditing
    1. Subtopic 1
       1. Information risk reflects the possibility that
       2. the information upon which the business
       3. risk decision was made was inaccurate
    2. Subtopic 2
       1. Auditing can have a significant effect
       2. on information risk.
15. 5.causes of info risk
    1. Subtopic 1
       1. User verifies information
    2. Subtopic 2
       1. User shares information risk with management
    3. Subtopic 3
       1. Audited financial statements are provided
16. 4. Attestation services on information technology
17. 1. Accounting and bookkeeping services