Page 2 - Auditinf Electronic System

Chapter one

Audit, External Audit and Implications of information technology on
external audit

In This Chapter we will cover

First: introduction related with auditing

Second: External audit of financial statements (Audit 1.0)

Third: Implications of information technology on external audit (Audit 2.0)

First: introduction related with auditing:

In this Part of The Chapter, we will cover:

- The distinction between auditing and accounting
- Purpose of auditing
1. The distinction between auditing and accounting:
Accounting is an Information System, which is concerned with Identifying,

Measuring , and Recording the economic events of an organization
and then Communicating the results to interested users to help them
in decisions making.

When Auditing accounting data, auditors focus on determining whether recorded
information properly reflects the economic events that occurred during
the accounting period, and therefore must thoroughly understand the
accounting standards according to which the information s recorded.

So, the Auditing is the accumulation and evaluation of evidence about information
to determine and report on the degree of correspondence between the
information and established criteria by an independent and competent
person.

In addition to understanding accounting, the auditor must possess expertise in
the accumulation and interpretation of audit evidence. It is this expertise that
distinguishes auditors from accountants. Determining the proper audit procedures,

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬