Purpose and Demand for auditing

Auditing

An independent, evidence based examination of financial records, internal controls, and processes to evaluate accuracy, transparency, and compliance with applicable criteria.

Purpose of auditing

Turn financial claims into credible information, support transparency, protect users, and provide confidence needed by capital markets.

Financial statement auditing definition

A systematic process of objectively obtaining and evaluating evidence about assertions concerning economic actions and events, comparing those assertions with established criteria, and communicating results to interested users.

Business risk

The risk that an entity will fail to meet its objectives.

Information risk

The probability that information circulated by a company is false or misleading.

Demand for independent information assessment

Users often cannot observe operations directly and seek an independent third party to assess the information they rely on.

Modern information demands

Information is increasingly complex, required by remote users with constant access, needed more quickly, and capable of far reaching consequences.