ABSTRACT
Auditing is fundamental to providing assurance that information is creditable, and creditable information is fundamental for accountability. An audit is an examination. Although there are many types of audits, this explanation is primarily about financial statement and financial-related audits of state and local governments. In these audits, assertions are examined on a test basis, and accounting principles and estimates are assessed. On the basis of the collection and evaluation of evidence, the auditor renders an opinion about the financial statements and, for governments, sometimes issues additional reports. Fair presentation of financial statements is judged relative to established criteria set forth in generally accepted accounting principles (GAAPs). For many governments, additional reports address the adequacy of internal controls and compliance with policies, contractual agreements, grant provisions, regulations, and statutes.
