BU547 Lecture Notes - Lecture 5: Engagement Letter, Regional Policy Of The European Union, Financial Audit
Document Summary
Criminal offence of possession or laundering: transfer to legitimate organizations of money that was known to be proceeds of illegal activities, resulting in criminal charges. Objective two: compare management"s responsibilities with the auditor"s responsibilities: what are the auditor"s responsibilities when performing an audit, responsibility to hold an attitude of professional skepticism. Professional skepticism the auditor should not be blind to evidence that suggests that documents, books, or records have been altered or are incorrect. What are the assertions they are trying to prove: occurrence. Assets and liabilities included in the financial statements exist and the transactions actually took place: completeness. There are no unrecorded items: valuation. Assets and liabilities are properly valued: accuracy. Revenues and expenses are recorded in the proper amount. The general ledger agrees to supporting records (such as subsidiary ledgers): classification. Transactions in the company records are properly classified: timing.
