Summary o THE AUDIT PROCESS--principles,practice and cases.docxVIP

Lecture 1 1 One definition of an audit of financial and other information: An audit is an investigation or a search for evidence to enable reasonable assurance to be given on the truth and fairness of financial and other information by a person or persons independent of the preparer and persons likely to gain directly from the use of the information, and the issue of a report on that information with the intention of increasing its credibility and therefore its usefulness. 2 Justification of audit Reliability /Reassurance/ Insurance Uncertainty/ Complexity/ Creditability /Need for Independence