会计英语第10章.pptx

会计英语;10.1 Introduction to Audit 10.1.1 Definition of Audit Audit is a systematic process by which a competent, independent person objectively accumulates and evaluates quantifiable evidence from certain economic entity so as to identify the degree of correspondence between the quantifiable evidence and the established criteria. The final part of audit is to deliver the audit results, which is the audit reports, to relevant people.;Some key terminologies of audit 1. Quantifiable Information and Established Criteria 2. Economic Entity 3. Objectively Accumulating and Evaluating Evidence 4. Competent, Independent Person 5. Audit Report 6. Relevant People;Operational Audit Compliance audit Financial audit;1. Operational Audit A review of an organization’s operating procedures and methods so as to evaluate the performance of the organization’s economic activities, to identify opportunities and to put forward suggestions for improvement. The result of operational audit takes a form of written report to deliver information to users.;2. Compliance Audit Compliance audit is to check and determine whether the conduction of financial activities and operating activities are following laws, rules, regulations, contracts, or agreements. The result of compliance audit is generally reported to the management of the audited entity or the concerned organization or institution.;3. Financial Audit The purpose of financial audit is to determine whether the financial statements (including balance sheet, income statement, cash flow statement and the statement of changes in equity), the notes of financial statements together with the relevant statements are stated in accordance with accounting standard. .;1. Certified Public Accountants A professional who has obtained the qualified certificate of CPA according to the laws, and accepts the commission of engaging in audit, accounting consultation and accounting services. 2. Government Auditors An employee of an audit institution who a