BUS 426 Chapter Notes - Chapter 20: Financial Audit, Audit, Analytical Review

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Craig Emby

Document Summary

A (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)a(cid:374)age(cid:373)e(cid:374)t (cid:373)a(cid:455) (cid:271)elie(cid:448)e a(cid:374) audit to (cid:271)e u(cid:374)(cid:374)e(cid:272)essa(cid:396)(cid:455) (cid:271)e(cid:272)ause (cid:374)o (cid:271)a(cid:374)k o(cid:396) (cid:396)egulato(cid:396)(cid:455) agency requires audited financial statements. A lender may simply require a review or a compilation ( : review provides limited assurance on the financial statements, compilation provides no assurance. Matchi(cid:374)g the e(cid:374)gage(cid:373)e(cid:374)t with the users" assura(cid:374)ce needs. An audit, review, or compilation, depending upon external financing the assurance needs of the stakeholders. Private company that has plans to grow and. An audit, review, or compilation, depending upon attract new stakeholders and financing the assurance needs of the stakeholders; if the company plans to go public, an audit is preferred. Family members and a few close friends of a. A review or a compilation, depending upon how private company involved the users are. Used only by management and for the tax. Assess the (cid:862)plausi(cid:271)ilit(cid:455)(cid:863) of the i(cid:374)fo(cid:396)(cid:373)atio(cid:374), (cid:396)el(cid:455)i(cid:374)g upo(cid:374) i(cid:374)(cid:395)ui(cid:396)(cid:455), a(cid:374)al(cid:455)ti(cid:272)al p(cid:396)o(cid:272)edu(cid:396)es, a(cid:374)d discussion during the engagement.