• a subset of “Attest” engagements
• A Systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users.
• Assertion defined= a positive statement about an action, event, condition or performance over a period of time
• I.e. the numbers and disclosures in the FS are managements assertions i.e. Cash $1000- and both are audited.
• Why a Systematic process? –Audit procedures performed are not random, but rather based on a structured approach-
• Note: An audit does not provide absolute assurance, assurance as to the future viability of an organization, or an opinion on the efficiency effectiveness of operations