Bride Evening Wedding Simple Women's A Package Clutch Fashion Temperament Weaving America H Bridesmaid Lady SJLN Europe And Appointment Chapter 5 - Audit objectives and evidence
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Bride Evening Simple Clutch H Wedding Lady Women's SJLN Package Europe Fashion And A Bridesmaid Weaving Appointment America Temperament Fashion Package Women's Simple Appointment Bridesmaid America Bride Evening H A Lady Europe And Clutch Weaving Temperament SJLN Wedding The key concepts of this chapter:
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Fashion SJLN Appointment Temperament Clutch A Weaving Package America And Europe Evening Wedding Bride Lady Simple Bridesmaid Women's H The Concept of Audit Assertions
The 5 assertions are
Note that each line in the financial statements contains all assertions. However, the risk of misstatement for each assertion will vary according to the type of account. The auditor is more concerned about the higher risk assertions. For example, in general:
Each assertion will be re-written as specific objectives. For example, see p. 149.
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To be sure that their are no material misstatements, the auditor gathers evidence. According to auditing standards, there are two types of evidence, which are further explained on p. 150, Figure 5-2.
How much evidence does the auditor need? Auditing standards are very clear on this. You must have sufficient compentent evidential matter for a reasonable basis for an opinion.
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Audits are conducted in various phases. In each phase, certain procedures are often used.
Obtain understanding of internal control
Tests of controls
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