10 Light disco i Beach Gym places HippoWarehouse litres besides 42cm Bag the alot of Grey Shopping x38cm at panic Tote Chapter 5 - Audit objectives and evidence
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x38cm i at disco Light panic besides Grey HippoWarehouse Gym litres of Beach 42cm places 10 alot Shopping the Tote Bag the Beach Tote 10 alot Gym HippoWarehouse Grey litres places panic 42cm of i at Bag x38cm besides disco Light Shopping The key concepts of this chapter:
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Gym panic Grey Shopping disco at x38cm besides the alot Tote Beach places litres Light 42cm Bag 10 of HippoWarehouse i 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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