Nature and Functions of Auditing

In: Business and Management

Submitted By Nidudev
Words 439
Pages 2
Nature and Functions of Auditing

August 31st, 2012

Write a 700- to 1,050-word paper in which you explain the nature and functions of auditing. Relate your explanation to the audit functions in your organization, or an organization with which you are familiar. In your paper, be sure to address the following:

• Describe the elements of the Generally Accepted Auditing Standards (GAAS).

• Describe how these standards apply to financial, operational, and compliance audits.

• Explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded companies.
Discuss the additional requirements that are placed on auditors from this Act, and the actions of the PCAOB.
This paper discusses the nature and functions of auditing addressing the elements of the Generally Accepted Auditing Standards (GAAS), how these standards apply to financial, operational, and compliance audits, the effect that the Sarbanes-Oxley Act of 2002 (SOX) and the Public Company Accounting Oversight Board (PCAOB) will have on audits of publicly traded companies, and the additional requirements that are placed on auditors from SOX and PCAOB.
Nature and Functions of Audit
Auditing is a systematic process of obtaining and evaluating evidence regarding assertions about economic actions, events and processes wherein evaluations are made and verified as true and correct. The auditing process consists of gathering, evaluating, and reporting. The auditor gathers information about the entities processes, economic transactions and procedures in an unbiased manner. The information is then evaluated to ensure that it follows GAAP or any other standards that apply. The auditor then compiles a report of their findings to be submitted to the appropriate parties. These processes are critical to the accurate…...

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