Auditing Research Paper
Auditing Research Paper
“Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens A., Elder R. J., Beasley M. S. 2010). Auditing of a company should be done by an independent person that has no affiliation with the company that is being audited. The auditor needs to be educated enough to process the audit. There are three different types of auditors, external, internal, and government. The external is the independent person that has no affiliation to the company. The audit they perform on the financial statements allows the general public and investors to see the whole picture on how the company is financially doing. The internal auditors are part of the organization in which they are auditing. They still have to follow the same guidelines as external auditors but their goal is to seek out any risk in practices. The “government accountability office auditor is an auditor working for the U.S. Government Accountability Office (GAO), a non partisan agency in the legislative branch of the federal government” (Arens A., Elder R. J., Beasley M. S. 2010). This position is responsible for auditing Congress. “Accounting is the recording, classifying and summarizing of economic events for the purpose of providing financial information used in decision making” (Arens A., Elder R. J., Beasley M. S. 2010). Where in auditing it is defined as “determining whether recorded information properly reflects the economic events that occurred during the accounting period” (Arens A., Elder R. J., Beasley M. S. 2010). Accounting has goals of providing reliable financial information that has been gathered over a period of time. This will show the companies assets and liabilities. The auditor will examine these entries and see if everything is accurately presented. The auditor will verify that the company is following the GAAP.
“Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens A., Elder R. J., Beasley M. S. 2010). Auditing of a company should be done by an independent person that has no affiliation with the company that is being audited. The auditor needs to be educated enough to process the audit. There are three different types of auditors, external, internal, and government. The external is the independent person that has no affiliation to the company. The audit they perform on the financial statements allows the general public and investors to see the whole picture on how the company is financially doing. The internal auditors are part of the organization in which they are auditing. They still have to follow the same guidelines as external auditors but their goal is to seek out any risk in practices. The “government accountability office auditor is an auditor working for the U.S. Government Accountability Office (GAO), a non partisan agency in the legislative branch of the federal government” (Arens A., Elder R. J., Beasley M. S. 2010). This position is responsible for auditing Congress. “Accounting is the recording, classifying and summarizing of economic events for the purpose of providing financial information used in decision making” (Arens A., Elder R. J., Beasley M. S. 2010). Where in auditing it is defined as “determining whether recorded information properly reflects the economic events that occurred during the accounting period” (Arens A., Elder R. J., Beasley M. S. 2010). Accounting has goals of providing reliable financial information that has been gathered over a period of time. This will show the companies assets and liabilities. The auditor will examine these entries and see if everything is accurately presented. The auditor will verify that the company is following the GAAP.