Question

1. Describe your understanding of the concept of auditing theory

2. Are there aspects of auditing theory you find particularly interesting or challenging?

3. Does some of these aspects tie in with anything you have learned in the past? Please explain.

4. Has learning auditing theory changed the way you think? How?

5. How might you incorporate or apply these ideas in the future, perhaps in your professional life?

Answer 1

1.Audit theories are various theories which are to be followed while performing an independent examinations of books of account by various auditors.

Auditing theory need to be followed while performance of an audit because these auditing theories are auditing framework which uncovers the various laws which have been formulated in regards to audit procedure and it also identify the relationship between various roles in a firm and planing of an audit.

These auditing theories guide the auditor while auditing and following various standards and procedure related to it, so that he would be able to better examine books of accounts and he would be applying a high level of professional scepticism in order to arrive at a conclusion.