Page 3 - Auditinf Electronic System

deciding the number and types of items to test, and evaluating the results are unique
to the auditor.

2. Purpose of auditing:
The auditor is trying to ascertain that the accounting gives a true and fair view

Note:
- True: information is factual and conforms to reality (not false/ free from material

misstatement)
- Fair: information is free from discrimination and bias, and complies with

accounting standards and rules
- To do an audit, there must be information in a verifiable form and some

standards (criteria) by which the auditor can evaluate the information. The
criteria for evaluating information also vary depending on the information being
audited.
- The auditor must be qualified to understand the criteria used and must be
competent to know the types and amount of evidence to accumulate to reach the
proper conclusion after examining the evidence.
- Auditors strive to maintain a high level of independence to keep the confidence
of users relying on their reports. Auditors reporting on company financial
statements are often called independent auditors.
- The final stage in the auditing process is preparing the audit report, which
communicates the auditor’s findings to users.

Second: external audit service of financial statements:

❖ The concept of external audit services:
The External audit service of financial statements is a kind of an attestation

service, by an independent and competent person (external auditor), so we can
definition it as follow:

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