Professional Documents
Culture Documents
Financial Audit
Auditing
Systematic process
Of objectively obtaining and evaluating
evidence
Regarding assertions about economic actions
and events
To ascertain the degree of correspondence
between those assertions and established
criteria
And communicating the results to interested
parties.
Audit
Independent examination
Of the financial statements of an enterprise
Conducted with a view to expressing an
opinion
As to whether those statements give a true
and fair view
True
Fair
Objectives of Auditing
1. Primary Objective
a. To produce a report by the auditor of
his opinion of the truth and fairness of
financial statements so that any person
reading or using them can have belief
in them
2. Secondary Objective
2.
3.
4.
5.
Duties of Auditors
1. Carry out procedures designed to obtain
sufficient appropriate audit evidence, in
accordance with International Standards of
Auditing,
to
determine
with
reasonableconfidence whether the financial
statements
are
free
from
materials
misstatement
2. Evaluate the overall presentation of the
financial statements, in order to ascertain
whether they have been prepared in
accordance with relevant legislation and
IFRS/IAS
3. Issue a report containing a clear expression of
their opinion on the financial statements
Limitations of Audit
1. The responsibility for preparation and
presentation of the financial statements is that
of directors of the entity. The audit does not
relieve the directors of any of their
responsibilities.
2. Auditors opinion is not a guarantee of the
future viability of the entity