Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
skills and objectivity of expertthe skills and competence of the expertwhether planning to require the work of an expert so the auditor should assess
examples of specialistsexamples of specialists or experts whose work may be relied upon include for valuations such as land and buildings machinery
experts as a source of audit evidencemostly the auditors work on evidence obtained from along within the entity supported through confirmations from
assertions about disclosureassertions about disclosure and presentationa rights and occurrence and obligations-disclosed transactions and events and
assertions about accountassertions about account balances at the duration enda existence-assets equity and liabilities interests existb obligations
assertions about classesassertions about classes of transactions and events for the period under audita occurrence-events and transactions which have
need of assertions in obtaining audit evidencemanagement is responsible for the fair presentation of financial statements which reflect the nature
limitation of audit evidencethe quantity and quality of evidence is constrained through the following factors as absolute proof is not possible some
forms of evidence observation is mostly witnessing internal book-keeping procedures and system control it involves attendance at wages pay out
techniques of obtaining evidenceisa 500 mentions them as such inspection of documents or records inspection of tangible assets observation inquiry
reliability - sources of evidencereliability of audit evidence is influenced through its nature and its source and since it is dependent upon the
relevance of audit evidencethe relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and
relevance - sources of evidencethe auditor obtains evidence either through compliance testing of the internal controls or through substantive tests
sufficiency - sources of evidencethe audit evidence should in total enable the auditor to form an opinion on the financial statements sufficiency
definition of audit evidenceaudit evidence which is all the information used through the auditor in arriving on the conclusions on such the audit
concept of audit evidencethe auditing is an evidence gathering exercise it is an exercise continued out to confirm the assertions made through
requirements of the companies acthere the seventh schedule to the companies act gives the matters which must be expressly stated in the auditors
accounting principles and policiesthe user of the accounts expects that the accounting principles and policies used will be in conformity with ias be
conformity and conservatism - external auditor reportconformityalthough the user of the accounts expects the accounts to conform to general accepted
objectivity - external auditor reportmany accounting figures are subjective and contain substantial terms of subjective judgment many more
fairness - auditingthe word fair can have the following meanings on the other hand clear plain and distinct and on the one impartial
meaning of true in auditingmeaning of true and fairpresent fairlytruth in accounting is quite different form scientific truth accounting does
attempts to define true and fair it must be concluded that there has been slight attempt precisely to define fair and truethe companies act needs an
attempts at definition of the true and fair viewthere following quotations represent authoritative views on the meaning of true and fair viewa true
history - true and fairinternational standards on auditing isas make it quite clear that the terms true and fair and present fairly which are used in