Dance Pointers Shoulder amp; Sack Pink Tappers Tappers Bag amp; Chapter 5 - Audit objectives and evidence
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Dance Pointers amp; Bag Shoulder Tappers Sack Tappers Pink amp; Pointers Tappers amp; amp; Dance Sack Shoulder Pink Tappers Bag The key concepts of this chapter:
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amp; Bag Pink Pointers Tappers amp; Dance Sack Tappers Shoulder 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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