Financial Statements Audit

Slides:

Advertisements

Similar presentations

Chapter 1 An Introduction to Assurance and Financial Statement Auditing McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights.

Advertisements

Audit and Assurance services

Clarified ISAs ISA Groups

Learning Objectives LO1 Describe the current audit environment, including developments in regulatory oversight and provincial regulation of public accountants.

An Introduction to Assurance and Financial Statement Auditing

1 ACC 3303: AUDITING 2 Assurance Services ?? Need for Assurance ? Illustration using an Audit Engagement as an example.

An Introduction to Assurance and Financial Statement Auditing

MODERN AUDITING 7th Edition

Intro & Chapter 2-1 Bob Anderson, UCSB CHAPTER 2-1 PROFESSIONAL STANDARDS: CHAPTER 2 WELCOME TO ECON 132- AUDIT.

Chapter Two Audit Reports

9.401 Auditing Chapter 1 Introduction. Definition of Auditing The accumulation and evaluation The accumulation and evaluation Of evidence about information.

BIT-224 Audit Chapter-2 Muhammad Khurshid Khan. Auditing Standards GAAS—Generally accepted auditing standards ensure “uniformly high quality audit work”

Introduction to Financial Statements and Other Financial Reporting Topics COPYRIGHT ©2007 Thomson South-Western, a part of the Thomson Corporation. Thomson,

2-1 McGraw-Hill/Irwin ©2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 Professional Standards: “The Rules of the Road”

9.401 Auditing Chapter 2 Audit Reports. Association Must determine whether an accountant is associated with financial statements Must determine whether.

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia by Gay & Simnett Slides prepared by Roger Simnett.

M ODULE 12 F INANCIAL S TATEMENT A UDIT E NGAGEMENT L ETTER CA. S RIPRIYA K UMAR Practical/ Article Training.

CHAPTER 2 FINANCIAL STATEMENT AUDITS AND AUDITORS’ RESPONSIBILITIES Fall 2007 u G enerally Accepted Auditing Standards u Assurance Provided by an Audit.

Professional Standards. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-2 Generally Accepted Auditing Standards-- General.

Mª ANGELA JIMENEZ 1 UNIT 4. EXTERNAL AUDIT BASIS CONCEPTS.

Reports By David N. Ricchiute

Learning Objectives LO1 Describe the association framework. LO2 Determine whether a PA is associated with financial statements. LO3 Describe the three.

Auditing & Assurance Services, 6e

Learning Objectives LO1 Describe the role of professional judgment in achieving the overall objectives of the independent auditor in conducting an audit.

Certification of Accounts. Certification of accounts » Audit Report on Financial (Attest) Audit is about expression of Auditor’s Opinion on the Financial.

Electronic Presentations in Microsoft ® PowerPoint ® Prepared by Brad MacDonald SIAST © 2003 McGraw-Hill Ryerson Limited.

An Introduction to Assurance and Financial Statement Auditing

Reports on Audited Financial Statements

Planning an Audit The Audit Process consists of the following phases:

M. ANGELA JIMENEZ 1 UNIT 5. REGULATION OF EXTERNAL AUDIT IFAC AND E.C.

Chapter 7 Auditing Internal Control over Financial Reporting McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved.

Auditing Sept. 24, Audit Standards Page 38.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

MODERN AUDITING 7th Edition Developed by: Gregory K. Lowry, MBA, CPA Saint Paul’s College John Wiley & Sons, Inc. William C. Boynton California Polytechnic.

Chapter 1 An Introduction to Assurance and Financial Statement Auditing Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or.

The Assurance Services Market

SA 700 (REVISED), SA 705 & 706 ASHOK SETH, Lucknow B. Sc, FCA, DISA (ICA)

2 - 1 Copyright  2003 Pearson Education Canada Inc. CHAPTER 2 The Auditor’s Reports.

Practice Management Quality Control

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] © Pearson Education Limited 2007 Slide 4.1 An Auditor’s.

Part Eleven Reporting on Financial Statements 1. 2 Structure of Seminar 1.Standards of Reporting 2.Types of Audit Opinions 3.Other Reporting Considerations.

S21: Reporting. Audit Reporting » The main objective is to ensure clear and informative reporting to the users of financial statements. » Audit Reports.

AC312 Week 7 4Auditor’s Report 4Truth and Fairness.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 7-1 Chapter Seven Auditing Internal Control over Financial Reporting.

1 Kingsley Karunaratne, Department of Accounting, University of Sri Jayewardenepura, Colombo - Sri Lanka Practice Management.

Auditor’s Professional Roles and Responsibilities.

Chapter 5 Evidence and Documentation McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 02 Professional Standards McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

Copyright © 2016 South-Western/Cengage Learning AUDIT REPORTS ON FINANCIAL STATEMENTS CHAPTER 15 Auditing A Risk-Based Approach To Conducting A Quality.

Audit Reports Chapter 3. Audit Reports What is an audit report? Different reporting guidelines exist depending on the type of company upon which the auditor.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter

Materiality And Audit Reporting Audit Report Audit Opinion

AUDIT STAFF TRAINING WORKSHOP 13 TH – 14 TH NOVEMBER 2014, HILTON HOTEL NAIROBI AUDIT PLANNING 1.

Audit and Assurance Introduction. Requirement  Preview before class. Ask more, and discuss more. Ask more, and discuss more. Make notes. Make notes.

Compliance with Technical Standards

Auditing & Investigations I

An Introduction to Assurance and Financial Statement Auditing

Chapter Two The CPA Profession

Reports on Audited Financial Statements

Auditing & Investigations II

Professional Standards

The Demand for Audit and Other Assurance Services

WELCOME TO OUR PRESENTATION

INTRODUCTION TO Compliance audit METHODOLGY and CAM

Audit Reports Chapter 3.

OBJECTIVE AND GENERAL PRINCIPLES GOVERNING AN AUDIT OF FINANCIAL STATEMENTS Lecture 2.

SA – 700 (Revised) Forming an Opinion and Reporting on Financial Statements SA-701 Communicating Key Audit Matters in the Independent Auditor’s Report.

Presentation transcript:

Financial Statements Audit Fundamentals of Financial Audits Relationship between Accounting and Auditing

Financial Statements Audit Verifiability of Financial Statement Data Verifiable data: Two or more qualified individual reach the same conclusions Need for Financial Statements Audit Conflict of interest Consequences of decisions (economic, social, other) Complexity (financial statements become increasingly complicated) Remoteness (most users are outside the company) Explanatory Theories of Auditing Agency theory (investors entrust their resources to managers, expecting return on capital) Information hypothesis (investors require information to assess risk and return) Insurance hypothesis (shifting liability for litigation to auditors)

Financial Statements Audit Financial Statements Audit Economic Benefits of Audit Access to capital markets Lower cost of capital Deterrent to inefficiency and fraud Control, risk assessment and operational improvements Limitations of a Financial Statements Audit Time lapse (between occurrence of transactions, balance sheet preparation and audit) Audit testing on samples and other selected data Over-reliance on expert systems (computer packages) Forming professional judgments in highly specialized areas (reports on too technical subjects) Report format limitations (reports follow a standard format which may not be sufficient to accommodate specific complexities)

Financial Statements Audit Duties of Company Auditors Carry out an audit Report to members their opinion whether the financial statements give a true and fair view and comply with applicable reporting framework and regulations Be independent of the company Exercise a reasonable degree of skill and care Statutory duties of auditors Auditors must report in specified format Duty to report on the company’s financial statements and send a copy to all members

Financial Statements Audit Contents of the Auditors Report Introduction (identification of annual accounts being audited) Description of scope and auditing standards followed Clearly state their view on the truth and fairness of the accounts Certify that financial statements have been prepared in accordance with the relevant financial accounting framework and the Companies Act Matters Reported on “by exception” (whether the auditor has:) Obtained all the necessary information and explanations Adequate accounting records have been kept Returns from branch offices are adequate Financial statements are in agreement with the records and returns The Audit Opinion The report must be “qualified” (including specific reservations) or “unqualified” (after taking comments into account)

Financial Statements Audit The Audit Process Obtain and accept engagement Plan the audit (understand the business and its risks, including those related to internal control) Audit performance and evidence gathering Evaluate results and formulate conclusions Audit reporting The Auditor’s Report Communication (different users, language and terminology, users’ level of understanding) Form (title, addressee, introduction, statement of responsibilities of management and the auditor) Scope (sample assessment of evidence, assessment of accounting principles, addressing significant management estimates, evaluation of overall presentation) Opinion (the financial statements have been prepared according to standards & relevant legislation and give adequate disclosure to proper understanding) Date, auditor’s address and signature