Auditing is studying about analytical and logical skills. It is much more conceptual in nature.For other accounting topics, they study about technical skills such as rules, techniques and computations to prepare and analyse financial information. Learning auditing can know how to obtain and evaluate evidence regarding assertions about economic actions. It helps to improve the decision making skills of consultants, business managers and other business decision maker for evaluating the materiality of the financial information.Free-market companies need audits because of the presence of conflicts of interest between the owners and the managers and the presence of information asymmetry between the owner and the manager. Therefore, the owners want to find an individual who is a professional and will not have any conflict of interest to them. Auditing appears to provide confidence and trust in financial information which provided by the managers to owners. Since the agency theory problem always exists between the owners and managers, even though auditing is not required by government regulation, the owners will still find auditors to help them to perform auditing in order to check whether the information provided by the managers is accurate and the owners can develop strategies based on the information. There are natural conflicts of interest because the target goals of owner and manager are different. For managers, they are seeking to maximize their own earnings such as their salaries and commissions which are expenses for the owners, while the owners seek to maximize the profit of companies. Therefore the managers will not act in a way that suitable for the finest interest of the owners. Moreover, information asymmetry also exists between them. The managers have more accurate information about the companies than the owners since they are working day to day in the companies and have control of the information. Therefore, managers may manipulate information of the companies to maximize their own interest.

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