Professional Documents
Culture Documents
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Auditing is a systematic process An audit involves obtaining and evaluating evidence about assertions regarding economic actions and events An audit is conducted objectively Auditors ascertain the degree of correspondence between assertions and established criteria Auditors communicate the audit results to various interested users
Types of Audit
Financial Statement Audit conducted to determine whether the financial statements of an entity are fairly presented in accordance with an identified financial reporting framework
Compliance audit involves a review of an organizations procedures to determine whether the organization has adhered to specific procedures, rules or regulations
Operational audit
is a study of a specific unit of an organization for the purpose of measuring its performance. The main objective of this type of audit is to assess entitys performance, identify areas for improvements and make recommendations to improve performance
Types of Auditors
Assertions made by the auditee FA- that the FS are fairly presented CA- that the organization has complied with laws, rules and regulations OA- that the organizations activities are conducted effectively and efficiently
Established criteria
FA- financial reporting standards or other frameworks CA- laws, regulations and contracts OA- objectives set by the board of directors
-Management is responsible for preparing and presenting the FS in accordance with the financial reporting framework
-Auditor is responsible to form and express an opinion on these FS based on his audit
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The auditor should comply with the Code of Professional Ethics for CPAs promulgated by the BOA. The auditor should conduct an audit in accordance with PSA. The auditor should plan and perform the audit with an attitude of professional skepticism.
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Conflict of interest between management and users of FS Expertise Remoteness Financial consequences