Auditing Answer Question 2022

Running head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Notes

AUDITING1
Answer to question 1
The audit is the procedure of assessing the accounting entries existing in the financial
report of the firm. The assurance, on the other hand is the process of analysing the accounting
entries present in the financial report of the company (Knechel and Salterio 2016). Assurance
is usually followed after the audit process has been made. Assurance is used for the
assessment of the accounting entries of the organization. Auditing and assurance are both
important in an organisation. The major point of differences between auditing and assurance
is given below.
AUDIT ASSURANCE
 Audit is the process, which checks
and evaluates accounting entries in
the organisation.
 Audit is the first and foremost step.
 Internal auditor or external auditor
does audit.
 Audit informs about the
misrepresentation done in the
financial records, any fraud and any
dishonest activities done in the
organisation or by the company
(Barr-Pulliam, Brown-Liburd and
Sanderson 2017).
 Audits includes ethical presentation
of financial records and statements.
 Assurance is the assessment of
financial entries and records of the
organisation.
 Assurance is generally followed by
audit. It starts after auditing has
began.
 Audit firm does the assurance.
 Assurance specializes is assessing
and improving the quality of
information in a company.
Assurance aids the decision making
of a organisation.
 Assurance is generally used after
auditing process to check the
accuracy of the financial records and

AUDITING2
Fair and accurate presentation has
been done by audit. Audit also
checks whether financial records are
as per accounting principals and
accounting standards.
provides assurance to the
shareholders whether any
misrepresentation of records, misuse
of funds, dishonest activities are
present in the firm or not (Schmidt
Wood and Grabski, 2016).
For example, ABC company conducted an audit process in their organisation by their
internal auditor to assess whether their financial statements are showing perfect results or not.
ABC wanted to evaluate the records to check its ethnicity. After the auditing process is
complete, ABC will hand over the financial records to THS audit company for the assessment
of their financial records. This assessment will aid them to evaluate whether there are still any
issues present in the records and financial statements or not. In addition, this will aid their
shareholders to understand current ethical position of the company therefore, they can further
in the organisation.
Answer to question 2
Auditor’s independence is the key factors influencing professional ethics and legal
liabilities of an auditor. Auditor’s independence became a debatable issue after accounting
scandals, questioning on auditors ethics and liabilities (Salim 2016). However, other variables
can also affect the professional ethics and liabilities of an auditor such as integrity,
confidentiality, negligence of financial report. Auditor’s independence denotes to the
individuality of external auditor and this approach is characterised by integrity plus objective
approach of the audit procedure. Auditor independence denotes to the individuality of the
internal auditors or of the external auditors from entities that have a monetary interest in the