The four theories of auditing are: Evidence accumulation theory: This theory emphasizes the importance of gathering sufficient and relevant evidence to support the auditor's conclusions.
It suggests that auditors should systematically gather and analyze data to reach their audit conclusions..
Auditing Theory gives new insights into the nature of materiality, evi- dence, professional judgement and scepticism in auditing.
This is achieved through the method of conceptual enquiry, conceived as a particular kind of philosophical investigation that is explained in the book, into the concepts of auditing..
Generally, the audit evidence the auditor collects is persuasive in nature, not conclusive in nature.
So there is never cent percent conclusive evidence in most cases while auditing.
This is one of the major limitations of auditing.
There also a lot of use of estimates in accounting..
Auditing is the verification of financial position as disclosed by the financial statements.
It is the assessment of accounts to ascertain whether the financial statements provide a true and fair view of the financial position and profit or loss of the concerned organization..
Why are Audit's important? An audit is important as it provides credibility to a set of financial statements and gives the shareholders confidence that the accounts are true and fair.
It can also help to improve a company's internal controls and systems.
How are audit fees determined?.
The solution is equipped with a set of features that enable you to edit and rearrange PDF content, add fillable fields, and eSign the document
Start a free trial to explore all the capabilities of pdfFiller, the ultimate document editing solution
Theoretical Framework of Auditing (Assumptions or Ideas that Support the Audit Function) 1
Financial Data are Verifiable 2
,Independence 3No Long-Term Conflict 4
Effective Internal Control 5
Consistent application of GAAP/PFRS 6
,Continuity 7