Chapter 1

Auditing is a process in which independent and

competent auditors collect and evaluate of evidence

about audited information to determine and report on

the degree of correspondence between the information

and established criteria.

• True

• False

Who implement the auditing?

• independent auditors

• state auditors

• internal auditors

• All of above answers

How many kinds of auditors in the market economy?

• 3 kinds: financial statement audit, compliance audit, operational audit

• 2 kinds: financial statement audit, compliance audit

• 1 kind: operational audit

• 2 kinds: compliance audit, operational audit

What is the kind of audited information?

• - The first, financial information.

  - The second, operational information.

  - The third, compliant information.

• - The first, financial information.

  - The second, operational information.

• financial information

The process of auditing

• implementing, completing and planning

• implementing, planning and completing

• planning, implementing and completing

independent and competent auditors:

• Independence in fact: maintains an unbiased attitude, follows the auditing

  standards and obeys the law.

• Independence in appearance: shouldn’t be influenced by the client‘s interest

  and close relationships.

• Competence: qualification, skills, ethics and factors needed to effectively

  manage and confirm the correctness of a company’s accounting procedures.

• All of above answers

What are the causes of information risk?

• The big gap between the users and supplier of information and

  adjustment of information which may benefit the supplier.

• The great volume of information

• The increased complexity of information and economic activities.

• Incorrect treatment of information.

• All of above answers

What is the best way to reduce information risk?

• User verifies information by himself/herself.

• User shares information risk with management or supplier

  of information

• User uses audited financial FSs provided by independent auditors.

Auditing has 2 main functions as follows:

• examination and confirmation (or verification function) (chức năng xác minh)

• consultancy functions (chức năng tư vấn)

• All of above answers

What is the difference between modern and traditional audit functions?

• - Traditional audit function: Confirmation & assurance (in the past and

  present)

  - Modern audit function: Recommendation & consultation (in the future).

• - Traditional audit function: Recommendation & consultation (in the future).

  - Modern audit function: Confirmation & assurance (in the past and

  present)

• There is no difference

• - Traditional audit function: Recommendation

  - Modern audit function: Confirmation