Auditing is interdisciplinary in its scope and methodology, encompassing accounting theory and applications, legal aspects, managerial issues, environmental factors and computer processing. In its modern sense, an audit is a process whereby the accounts of business entities and managerial performance are subjected to scrutiny to develop an opinion on fairness of financial statements and effectiveness of management. The general concern of auditing could be derived from the famous statement of Confucius: “The aim of the superior man is truth.” This course is designed to introduce students to basic concepts and standards. Concentration is mainly on auditing standards, ethics, principles and procedures used by external auditors in conducting financial and managerial audit.