In the conduct of audits of financial statements, it would be a seriousbreach of responsibility if the auditor did not thoroughly understand accounting.However, many competent accountants do not have an understanding of the auditingprocess. What causes this difference?

In the conduct of audits of financial statements, it would be a seriousbreach of responsibility if the auditor did not thoroughly understand accounting.However, many competent accountants do not have an understanding of the auditingprocess. What causes this difference?

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 3DQ

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Question

In the conduct of audits of financial statements, it would be a serious
breach of responsibility if the auditor did not thoroughly understand accounting.
However, many competent accountants do not have an understanding of the auditing
process. What causes this difference?

Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.

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