Introduction

While one organization is restructuring its post room, another has invented a low-cost, low-emission alternative to hydrocarbon fuel. While one organization indicates a pending increase in local taxes, another patents a retroviral drug for an incurable condition , and yet another quells a public order situation in a major capital city. And while children starve in Africa, we launch probes to the planets in search for our homes and resources of the future .

However we see it, organizations of just about every type no matter what their global significance, or how they differ in detail are concerned with transforming inputs to outputs. They do this against a backdrop which readily affects and in turn is affected by the conduct of their activities. This backdrop is the business environment , one that is increasingly complex, dynamic and volatile. As an (anonymous) delegate on one of our recent auditor training courses said:

change is the only constant these days

If we are able to understand this business environment and the possible or likely effects it might have upon organizations, it will not only assist us in understanding the practice of business in its entirety but will help auditors in their functioning as well.

As you will see, auditing is about providing a confirmation (or an assurance) that an organization has reasonably addressed foreseeable risks towards the achievement of its objectives within a suitable framework for internal control. Along with providing assurance for the present,...