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The examination of account books and business vouchers which enables the auditor to satisfy himself that the balance sheet is properly drawn up, so as to give a true and fair view of the state of business affairs and that the profit and loss account gives true and fair view of the profit/loss for the financial period, according to the best of information and explanation given to him and as shown by the books; and if not, in what respect he is not satisfied, is known as Auditing.
The vital thing for making an economic decision is the information available at the time the decision is made. For example, the decision of a bank to make a loan to a business is based upon previous financial relationships with that business, the financial condition of the company as reflected by its financial statements and other factors.
According to the decision makers’ intention if the decisions are consistent, the information used in the decision process must be reliable. Unreliable information can cause inefficient use of resources which will be detrimental to the society and the decision makers. In the lending decision example, assume that the barfly makes the loan on the basis of misleading financial statements and the borrower Company is ultimately unable to repay. As a result the bank has lost both the principal and the interest. In addition, another company that could have used the funds effectively was deprived of the money.
The reasons for the cases in which unreliable information is provided are remoteness of information, voluminous data and the existence of complex exchange transactions. The cost of obtaining more reliable information must be weighed against the expected benefit for overcoming the problem of unreliable information.
A common way to obtain reliable information is to have some type of verification otherwise called audit performed by independent persons. The audited information is then used in the decision making process on the assumption that it is reasonably complete, accurate and unbiased.
A number of Symposiums and Workshops are conducted worldwide on auditing. Some of them are AICPA National Advanced Accounting and Auditing Technical Symposium, Internal Auditing Workshop, Auditor Workshop for Internal Auditors and Support Services Affiliates, Annual Accounting and Auditing Workshop, 21st Annual International Symposium on Audit Research (ISAR 2015), 2015 Internal Audit Symposium, 2015 National Multistate Tax Symposium.
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Conferences Related to Auditing:
• IIA's (institute of internal Auditors) 2015 International Conference
• 2015 Auditing Section Midyear Conference and Doctoral Consortium
• 2015 Financial Accounting and Reporting Accounting Section Midyear Meeting
• 2015 Accounting Information Systems Section Midyear Meeting and AIS New Scholar Consortium
• AAA New Faculty Consortium
• 2015 APLG/FSA Annual Seminar
• 2015 Internal Auditing Conference
• AICPA Employee Benefit Plans Conference
Relevant Associations and Societies:
• The Institute of Internal Auditors, USA
• AuditNet, USA
• Kuwait Association of Accountants and Auditors, Kuwait
• Association of Healthcare Internal Auditors, USA
• Auditing Association of Canada, Canada
• The Association of Chartered Certified Accountants, UK
• Association of Certified Fraud Examiners, USA
• American Accounting Association, USA
• SIFMA (Securities Industry and Financial Markets Association) Internal Auditors Society, USA
• Chartered Institute of Internal Auditors, UK
Major Companies Associated with Auditing:
• PwC, London, UK
• Ernst & Young, London, UK
• KPMG, Amsterdam, Netherlands
• Deloitte, New York, USA
• Grant Thornton, Chicago, USA
• BDO International, London, UK
• Baker Tilly, Chicago, USA
• Smith & Williamson
• Mazars, Paris, France, London, UK
• Moore Stephens, London, UK
This page will be updated regularly.
This page was last updated on 28th Jan, 2015