Audit and Assurance

Objective: express an opinion as to whether the F/S prepared in all material respects in accordance with an applicable financial reporting framework. whether the f/s are preseted fairly or give a true and fair view.
Types of external audit
1. Statutory: By Law. prepared annually. small companies are exempt.
  1. revenue < 10.2M SOFP< 5.1M <50 employees.
2. Non-statutory: requested.
The Audit Report. End result: accountability= stewardship: duties of person managing another property. Able to justify actions and accept responsibility. protect, grow and communicate.
1. Unmodified= most common (T+F). Modified.
Assurance and Engagement. gain assurance of how company is doing from external party. (PEEM)
1. Practioner. Express conclusion. Enhance degree of confidence. Measurement of subject matter.
Need (CREST)
1. Criteria. Report written. Evidence. Subject matter. Third party.
2. Benefits: increase credibility. Decrease of bias, error and fraud. Draws attention to abnormalities, recommend control. Give investors added faith.
Three types of Audit
1. 1) External 2) Internal 3) Review
  1. Level of assurance: reasonable=positive (1) limited=negative (2,3)
Review and Engagement: sate whether anything has come to the auditors attention that causes F/S not prepared in all material respects
Limitations (When Lauren Greedy Can She Jumps: Wording limited. Long time after y/e. Grey areas. Control. Sampling. Judgement

Resource summary

	Created by Megan Lloyd over 7 years ago