What is the philosophy of an audit ?
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| THE PHILOSOPHY OF THE AUDIT |
Mautz and Sharaf pregnant Audit as a field of knowledge built in pusatinti abstract mathematics, including through logic and metaphysics. On this basis, they build the schema hierarchy consists of:
- Philosophical foundations
- Propositions
- The concept of
- Teaching
- Practical application.
At the next level of the scheme, Murtz and sharaf (1961, p. 42) offers eight tentative Auditing postulates:
Financial reports and financial data veririable.
There need not be a conflict between auditors and management company under audit.
Financial reports and other information submitted for verification is free from collusion and irregularities are not uncommon.
The existence of a satisfactory internal control systems eliminate the possibility of irregularities.
Consistent application of the genrtally accepted accounting principles result in fair prisentation financial position and operating results.
In the absince clear evidence to the contrary, what has held true in the fitting to the company under examination will apply in the future.
When examining the financial data to express an opinion thereon, the auditor actedexclusively in the capacity of an auditor.
Independent auditor's professional status professional obligations which it imposes.
The implications of each of these propositions, and the relevance or otherwise of the contemporary to audit, issues that are either worthy of study, but will take us away from the main purpose of this discussion. From the first of these, in postulates regarding verifiability financial information, Mautz and Sharaf gain:
- Proof theory
- The verification procedure
- The application of probability theory to audit
- Some limit the responsibility of the auditor.
On the next level scheme, Mautz and Sharaf (1961, p. 42) they offer eight tentative Auditing postulates:
Financial statements and financial data that can be verified.
There need not be a conflict between auditors and management company under audit.
Financial reports and other information submitted for verification is free from collusion and irregularities are not uncommon.
The existence of a satisfactory internal control systems eliminate the possibility of irregularities.
Consistent application of the principles generally accepted accounting resulted in the fair presentation of the financial position and operating results.
In the absence of clear evidence on the contrary, what has held true in the past for companies under examination will apply in the future.
When examining the financial data to express an opinion thereon, the auditor actedexclusively in the capacity of an auditor.
Independent auditor's professional status professional obligations which it imposes.
To do so, they bring to bear on their ultimate level of five major audit concept schemes (ibid., p. 67):
- Evidence
- Because care audit
- Fair presentation
- Independence
- Ethical behavior
Flint (1988) gives a survey of the philosophy and principles of auditing newer than Mautz amd Sharaf. With the propositions which he proposes as the basis for the development of the theory of the audit are:
The main condition for audits is that there is a relationship of accountability.
Accountability of the subject is too far away, too complicated and too great significance to the implementation of a task to be shown without any audit process.
It is important to distinguish the characteristics of audit independence and freedom from the limitations of the status of the investigation and reporting.
The subject of the audit, such as behavior, performance or achievements or record events or circumstances, or statements or facts related to this one, prone to verify by proof.
Standards of accountability, such as behavior, performance, achievements and the quality of information, can be arranged for those responsible; actual behavior, performance, achievements, quality and so on can be measured and compared to these standards by reference to known criteria; and the process of measurement and comparison requires the exercise of skill and judgment.
Meaning, the meaning and purpose of the financial report and audited data is quite clear that the credibility given his due as a result of an audit can be clearly expressed and communicated.
Audits generate socio-economic benefits.
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