BU477 Lecture Notes - Lecture 5: Audit Evidence, Financial Statement, Income Statement
Document Summary
Materiality this is not a set thing, e. g. the ,000 and ,000 job ad example, you have to use professional judgement sometimes. Objective of conducting an audit of financial statements: express an opinion on the financial statement, whether the financial statements are presented fairly. If it was not expressed fairly, then the auditor must demonstrate how and why the auditor reached to those conclusions. In event that management insists on financial statement disclosure that the auditor find unacceptable, the auditor can either issue an adverse or qualified opinion or as a last resort, withdraw from the engagement. Responsibilities of those charged with governance: corporate governance set of (cid:396)elatio(cid:374)ships (cid:271)et(cid:449)ee(cid:374) the (cid:272)o(cid:373)pa(cid:374)y"s (cid:373)a(cid:374)age(cid:373)e(cid:374)t, its (cid:271)oa(cid:396)d, its shareholders, and other stakeholders, oversee management and the f/s audit. Audito(cid:396)"s respo(cid:374)si(cid:271)ility: overall objectives of the audit of the financial statements are, 1. ) Inventory and distribution cycle acquisitions journal, sales journal, general journal: capital acquisition and repayment cycle acquisitions journal, cash disbursement journal, general journal.
