Download e-book for iPad: Auditing and Assurance Services: A Systematic Approach, by William F. Messier

By William F. Messier

ISBN-10: 0073526908

ISBN-13: 9780073526904

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Additional resources for Auditing and Assurance Services: A Systematic Approach, Edition 6

Sample text

Are some of the seller’s assertions more important than others? For instance, you are probably not equally concerned with the assertion that there is no structural rot and the assertion that the lightbulbs in the bathroom are relatively new. Depending on what you are willing to pay, the inspection could theoretically range from the extremes of driving past the house to taking the home entirely apart, board by board. How thorough do you want the inspector to be? Do you want the inspector to issue a “pass-fail” grade or would you like more details, such as costs of necessary repairs?

Test your intuition—what characteristics would you like your inspector to possess? In Table 1–1 we have listed several characteristics we think would be desirable. qxd 10/23/07 1:04 PM Page 9 Chapter 1 TABLE 1–1 An Introduction to Assurance and Financial Statement Auditing 9 Important Characteristics of House Inspectors and Inspections Desirable Characteristics of House Inspectors • Competent—they possess the required training, expertise, and experience to evaluate the property for sale. • Objective—they have no reason to side with the seller; they are independent of the seller’s influence.

Previts, and W. D. Samson, “Auditing in the United States: A Historical Perspective,” ABACUS (2005), pp. 21–39, for a discussion of the development of auditing in the United States. qxd 10/23/07 1:04 PM Page 7 Chapter 1 An Introduction to Assurance and Financial Statement Auditing 7 Again, the owner adjusts for this possibility by assuming that the manager will manipulate the reports to his or her benefit and by reducing the manager’s compensation accordingly. It is at this point that the demand for auditing arises.

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Auditing and Assurance Services: A Systematic Approach, Edition 6 by William F. Messier

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