Basic postulates of auditing which were identified by Mautz and Sharaf in "The Philosophy of Auditing" and can be summarized

as follows: Truth and fairness The auditor is concerned that the financial statements under examination conform to law and best practice. Independence The auditor is independent through status and is truly objective in expression of opinion. Evidence An auditor arrives at his opinion through the systematic collection of evidential data on which his judgment is based. Responsibility The auditor does not prepare financial statements or guarantee their accuracy nor does he value the business. He is not responsible for the prevention or detection of immaterial fraud. Data Financial statements and financial data are verifiable. Management support There is no necessary conflict of interest between the auditors and the management of the enterprise under audit. Fraud The financial statements and other information submitted for verification are free from collusive and other unusual irregularities. Internal Controls The existence of a satisfactory system of internal control eliminates the probability of irregularities. Fair representation Consistent application of generally accepted accounting principles (GAAP) results in the fair presentation of financial position and the results of operations. Operational consistency In the absence of clear evidence to the contrary, what has held true in the past for the enterprise under examination will hold true in the future. Professional behavior When examining financial data for the purpose of expressing an independent opinion thereon, the auditors act exclusively in the capacity of auditor. Audit support The professional status of the independent auditor imposes commensurate professional obligations.