By William F. Messier
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Extra resources for Auditing and Assurance Services: A Systematic Approach, Edition 6
First, the definition focuses on decision making. Making good decisions requires quality information, which can be financial or nonfinancial. Second, it relates to improving the quality of information or its context. An assurance service engagement can improve quality through increasing confidence in the information’s reliability and relevance. Context can be improved by clarifying the format and background with which the information is presented. Third, the definition includes independence, which relates to the objectivity of the service provider.
41–50. 3 G. J. Benston, “The Value of the SEC’s Accounting Disclosure Requirements,” The Accounting Review (July 1969), pp. 515–32. 4 Over time, securities exchange markets developed, enabling companies to raise the investment capital necessary to expand to new markets, to finance expensive research, and to fund the buildings, technology, and equipment needed to deliver a product to market. , bonds) so that vast amounts of capital can be raised from a wide variety of investors and creditors. A public company is a company that sells its stocks or bonds to the public, giving the public a valid interest in the proper use of, or stewardship over, the company’s resources.
Auditing, attest, and assurance services are then defined, and an overview of the auditing process is provided. 3 The Study of Auditing [LO 1] You will find that the study of auditing is different from any of the other accounting courses you have taken in college, and for good reason. Most accounting courses focus on learning the rules, techniques, and computations required to prepare and analyze financial information. Auditing focuses on learning the analytical and logical skills necessary to evaluate the relevance and reliability of the systems and processes responsible for recording and summarizing that information, as well as the information itself.