Auditing Theory draws on modern philosophical explanations of rule-governed practices to provide an innovative theory of auditing underpinning auditing practice. A key aim of the book is to identify the objectives of auditing in the context of corporate financial reporting, and to illuminate the underlying beliefs about what kind of practices will fulfil these objectives. It looks to explain how the concepts that are used in developing these practices arise out of the objectives and beliefs, and how the concepts are in turn used to develop and apply the rules that govern auditing practice.
Auditing Theory gives new insights into the nature of materiality, evidence, professional judgement, and scepticism in auditing. This is achieved through the method of conceptual enquiry, conceived as a particular kind of philosophical investigation, into the concepts of auditing. The insights provided in this book should assist standard setters in their decisions and practitioners in following auditing standards.