lOMoAR cPSD| 45903860 Chap 1:
The auditor’s role: is to determine whether the reports prepared by the manager conform to the
contract’s provisions. Thus, the auditor’s verification of the financial information adds credibility to
the report and reduces information risk, or the risk that information circulated by a company’s
management will be false or misleading.
Auditing is demanded because it plays a valuable role in monitoring the contractual relationships
between the entity and its stockholders, managers, employees, and debt holders lOMoAR cPSD| 45903860
Types of Other Audit, Attest, and Assurance Services : • Internal Control Audits, • Compliance Audit • Operational Audits
Types of Auditors: External Auditors - independent auditors or certified public accountants (CPAs) • Internal Auditors • Government Auditors lOMoAR cPSD| 45903860 lOMoAR cPSD| 45903860 lOMoAR cPSD| 45903860
Business as the Primary Context of Auditing: the auditors’ primary concern is the industry or
business of his or her audit client lOMoAR cPSD| 45903860