Audit:

An Overview
Mark John Christian C. Lumindas
College Lecturer / Reader’s Reference Staff / Quality Assurance Associate
 Auditing Defined
▪ Philippine Standards On
Auditing
▪ To enable to express an opinion
whether the financial statements are
prepared, in all material respects, in
accordance with an identified financial
reporting framework.
▪ American Accounting
Association
▪ An audit is a systematic process of
objectively obtaining and evaluating
evidence regarding assertions about
economic actions and events to ascertain
the degree of correspondence between
these assertions and established criteria
and communicating the results to interested
users.
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Relevance
in Strategic
Financial
Management
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Types of
Audit
Just for your information!
 “
Don’t audit the past because you
may end up getting hurt for the
things that you’ve done but audit
the future. Show up and make the
most out of it now!

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▪ Financial Statement Audit
▪ Compliance Audit
▪ Operational Audit

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BIG
CONCEPT
In the case of government and
not for profit organization and
other industries.

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 Types of Auditors
▪ External ▪ Internal ▪ Government
Auditors Auditors Auditors

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Theoretical Framework of
Auditing
Auditing function operates on
the assumption that all
financial data are verifiable.
An audit benefits the public.
Effective internal control
system reduces the possibility
of errors and fraud affecting
the financial statements.
The auditor should always
maintain independence with
respect to the financial
statements under audit.
Consistent application of
generally accepted accounting
principles (GAAP) or Philippine
Financial Reporting Standards
(PFRS) results in fair
presentation of financial
statements.
There should be no long-term
conflict between the auditor
and the client management.
What was held true in the past
will continue to hold true in
the future in the absence of
known conditions to the
contrary.
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Auditor’s Responsibility

▪ Error ▪ Fraud ▪ Noncompliance

with Laws and
Regulations

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Types of Fraud

Misappropriation of
Fraudulent financial
assets or employee
reporting
fraud

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Fraud involves motivation to
commit it and a perceived
opportunity to do so.

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THANKS!
ANY QUESTIONS? REACTIONS?
VIOLENT REACTIONS?
You can find me at:
▪ mlumindas@gmail.com
▪ Tangelder Library 2nd Flr. College Building

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