The objective of an audit of the financial statements is an expression of an opinion on
Show Did the auditors sleep on the job? Did they collude with the management? Can we even trust auditors? Ghanaians have been asking such questions ever since the Bank of Ghana withdrew the licenses of five banks. So, to better judge the work of an auditor, you must:
In this article, we discuss the objectives the auditor seeks to achieve in a financial statement audit. We will discuss the various aspects of an audit in follow up articles. Note: This article has a technical flavour. Why an audit?The management of the business prepares the financial statement. Investors, creditors and others use financial statements when making financial decisions. They rely on the financial statements put out by the management. And they must be confident that the financial statements are trustworthy and reliable. Financial statement audits give users confidence that the financial statements are reliable. What is the goal of an audit?Financial statement auditors have specific goals that are common to all audits. The primary goals of a financial statement auditor are:
The management of the business cannot change these primary goals. They can, however, set other goals that they wish to achieve, with the agreement of the auditor. What does this technical definition mean?To aid understanding, let us look at a definition of some keywords in the above:
6 key takeaways
Written by Emile Vorgbe Emile is the manager of the audit unit of SCG Chartered Accountants. [1] IAASB is International Audit and Assurance Standards Board, a global body, issue globally used audit standards. [2] ISA 200 – Overall Objectives of the Independent Auditor and the Conduct of an Audit in accordance with the International Standards on Auditing. This is one of the standards issued by the IAASB Recommended textbook solutionsIntermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 689 solutions Financial Accounting4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas 1,097 solutions Century 21 Accounting: General Journal11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman 1,009 solutions What is the objective of an audit of financial statements?The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.
What is expression of opinion in auditing?An auditor's opinion is a certification that accompanies financial statements. It is based on an audit of the procedures and records used to produce the statements and delivers an opinion as to whether material misstatements exist in the financial statements.
What are audit objectives in auditing?The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared in accordance with accounting standards.
What are the 4 types of audit opinions?4 levels of audit opinions. Unqualified. A clean “unqualified” opinion is the most common (and desirable). ... . Qualified. The auditor expresses a qualified opinion if the financial statements appear to contain a small deviation from GAAP but are otherwise fairly presented. ... . Adverse. ... . Disclaimer. ... . Beyond the opinion.. |