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Social needs of auditing and different types of audits and their relationships edited week 1 fin590

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Social Needs of Auditing and Different Types of Audits and their Relationships
University of Phoenix
FIN/590
November 23, 2020

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Fundamentals of Auditing
As corporations continue to provide products and services, stakeholders and shareholders
demand a concise audit report that traces business managers' financial usage. Auditing exists in
the corporate industry alone, but the practice is also part and parcel of any organization with a
financial footing. This paper highlights the social need for auditing while, at the same time,
opines the different types of auditing and their relationships.
Types of Audit and The Relationship of Auditing, Attestation, and Assurance Services
According to Shah et al. (2017), there are three main types of audits: external audits,
internal audits, and Internal Revenue Service (IRS). Certified Public Accounting firms conduct
external audits and within the premise of their Report is an auditor's opinion. On the other hand,
resident accountants make internal audits and are mostly used for improving processes and
streamlining financial flow in a company. The IRS routinely conducts audits on taxpayers’
returns and individual transactions.
Mubako (2019) indicates that the relationship between auditing, attestation, and
assurance is intertwined. Auditing is a type of attestation service, while auditing and attestation is
a type of assurance services. Auditing entails giving an attestation to any claim of financial
misappropriation by management, while auditing and attestation assure shareholders of their
organization's financial standing.

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1 Social Needs of Auditing and Different Types of Audits and their Relationships University of Phoenix FIN/590 November 23, 2020 2 Fundamentals of Auditing As corporations continue to provide products and services, stakeholders and shareholders demand a concise audit report that traces business managers' financial usage. Auditing exists in the corporate industry alone, but the practice is also part and parcel of any organization with a financial footing. This paper highlights the social need for auditing while, at the same time, opines the different types of auditing and their relationships. Types of Audit and The Relationship of Auditing, Attestation, and Assurance Services According to Shah et al. (2017), there are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS). Certified Public Accounting firms conduct external audits and within the premise of their Report is an auditor's opinion. On the other hand, resident accountants make internal audits and are mostly used for improving processes and streamlining financial flow in a company. The IRS routinely conducts audits on taxpayers’ returns and individual transactions. Mubako (2019) indicates that the relationship between auditing, attestation, and assurance is intertwined. Auditing is a type of attestation service, while auditing and attestation is a type of assurance services. Auditing entails giving an attestation to any claim of financial misappropriation by management, ...
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