Shoulder Fragrance Slung Rhombic Bag Package Western Fashion Women's Small Small Jelly Red WEII Chain Chapter 5 - Audit objectives and evidence
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Red Women's Western Bag Chain Jelly Small Shoulder Fashion Slung WEII Package Rhombic Fragrance Small Package Small Jelly Bag Western Red Fashion Slung Fragrance Rhombic Shoulder Chain Women's Small WEII The key concepts of this chapter:
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Fragrance Slung Western Chain Red WEII Small Fashion Rhombic Jelly Package Shoulder Women's Small Bag 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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