Committee on Basic Auditing Concepts, 1969-71.

Abstract The article highlights the report of the Committee on Basic Auditing Concepts of the American Accounting Association. The charge of this committee is to investigate the role and function of auditing and make recommendations for research projects, examine the problems of evidence, and issue a position paper on the scope of auditing by accountants. The Auditing Concepts Committee began its deliberations with rather wide differences in opinion regarding completion of its charge. Frequently, the term audit or auditing is modified by a descriptive word or phrase to indicate either the particular purpose of the audit or the subject matter of the audit or both. Accounting methodology employs techniques and procedures to measure, describe, and interpret economic data to users. Their application results in an abstract expression of the activities of acquiring, using, and disposing of economic resources. One semantic problem of the auditor arises from the reader's attachment of a different meaning to the wording of the auditor's report from that intended by the auditor. Indication of some potential or specified lack of correspondence between the audited information and established criteria is the purpose of graded opinions.