ADMN 4301H Chapter Notes - Chapter 1: Financial Audit, Corporate Social Responsibility, Audit Risk
30 Mar 2020
School
Department
Course
Professor
Document Summary
Internal control: the processes implemented and maintained by management to help entities achieve its objectives material. Amount/disclosure that is significant enough to make a difference to a user: materiality maximum amount of misstatement (or omission) the auditor can tolerate and still issue a clean opinion. Sufficient and appropriate evidence relates to the quantity and quality of the evidence collected by the auditor. Who uses a company"s financial statements and why: the users of the financial statements are not limited to the shareholders or owners of the business, other users can include: Investor: can include current or potential investor decisions include to buy, hold, or sell stake in the organization. Suppliers: may want to assess whether the entity can pay them back for goods supplied: customers: may look into going concern if it is to rely on the entity for goods.
