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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 981 |
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In order to understand what an audit is and how it is conducted in the modern context, a definition is needed.(2) A comprehensive definition of auditing with general application is as follows: Auditing is a systematic process of objectively gathering and evaluating evidence relating to assertions about economic actions and events in which the individual or organisation making the assertions has been engaged, to ascertain the degree of correspondence between those assertions and established criteria, and communicating the results to users of the reports in which the assertions are made...
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This definition conveys that: auditing proceeds by means of an ordered and structured series of steps; auditing primarily involves gathering and evaluating evidence. In pursuing this activity the auditor maintains an objective unbiased attitude of mind; the auditor for the company, (in this case wwal-mart) critically examines assertions made by an individual or organisation about economic activities in which they have been engaged; the company assesses how closely these assertions conform to the 'set of rules' which govern how the individual or organisation is to act and/or report to others about the economic events which have occurred...
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