Audit and Assurance Essentials: For Professional Accountancy Exams, + Website

CHAPTER 1

AUDITORS, AUDITS AND OTHER TYPES OF ASSURANCE AND PASSING THE EXAM FIRST TIME

Covering: The Role of Audit and Other Types of Assurance in the Economy, Accountability, Stewardship and Agency Theory, the Relationship between Auditors, Management and Shareholders, Overview of the Assurance Process from Planning to Reporting, the Style and Content of Auditing and Assurance Exams, Study Technique and Exam Technique.

Why do I need to read this section?

Because:

• questions on the nature and purpose of audit and assurance engagements are set regularly;
• of rising levels of audit exemption, particularly in Europe;
• of the important differences between audits, other forms of assurance, and non-assurance engagements;
• there are many misconceptions about audit and assurance which this short section will help you eliminate at the outset;
• there are many misconceptions about effective study, how examiners set papers and exam technique. This section should help you make the best use of the limited time you have to study for this paper.

With the exception of the material on study, exams and technique, all of the information in this section is covered in more detail in subsequent sections.

What is important in this section?

Understanding:

• that audit is a sub-set of assurance and that all assurance engagements are characterised by an assessment of the risk of material misstatement;
• the limitations of an audit as well as its benefits;
• that compilation and agreed-upon procedures engagements ...