Learning Objectives

Understand why studying auditing can be valuable to you and why it is different from studying accounting.

Understand why there is a demand for auditing and assurance.

Understand intuitively the demand for auditing and the desired characteristics of auditors and audit services through an analogy to a house inspector and a house inspection service.

Understand the relationships among auditing, attestation, and assurance services.

Understand the basic definition and three fundamental concepts of a financial statement audit.

Understand why on most audit engagements an auditor tests only a sample of transactions that occurred.

Understand the basic financial statement auditing process and the phases in which an audit is carried out.

Understand why auditing demands logic, reasoning, and resourcefulness from auditors.