01220501 Wally Men Clip Bridge Havana Bridge Money The The Chapter 5 - Audit objectives and evidence
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The Men Clip Wally Havana Money 01220501 The Bridge Bridge 01220501 Men The Bridge Wally Clip Money Bridge The Havana The key concepts of this chapter:
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Clip The Bridge Havana Wally The Men Money Bridge 01220501 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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