Professional Documents
Culture Documents
A.) Purpose/Premise
1. The Purpose of an audit is to provide F/S users with an opinion by the auditor
on whether the F/S are presented fairly, in all material respects, in accordance
with the applicable financial reporting framework.
a. (An auditor's opinion enhances the degree of confidence that intended
users can place in the financial statements.)
3. The auditor can only obtain reasonable assurance, and not absolute assurance,
that the F/S are free from material misstatement because of inherent
limitations which arise from:
a. The nature of financial reporting.
b. The nature of audit procedures.
c. The need for the audit to be conducted within a reasonable period of time
and so as to achieve a balance between benefit and cost.
D.) Reporting
1. Based on an evaluation of the audit evidence obtained, the auditor expresses, in
the form of a written report, an opinion in accordance with the auditor's
findings, or states that an opinion cannot be expressed.
a. The opinion states whether the F/S are presented fairly, in all material
respects, in accordance with the applicable financial reporting framework.