acc-3600-notes-summary-auditing-and-assurance.pdf - lOMoARcPSD|3484379 ACC 3600 Notes Summary Auditing and assurance Auditing and Assurance(Monash

acc-3600-notes-summary-auditing-and-assurance.pdf -...

This preview shows page 1 - 5 out of 34 pages.

StuDocu is not sponsored or endorsed by any college or university ACC 3600 Notes - Summary Auditing and assurance Auditing and Assurance (Monash University) Downloaded by Bo Bold ([email protected]) lOMoARcPSD|3484379
Image of page 1
Week 1 Introduction and overview of audit and assurance 1. Financial statement Audit An engagement designed to express an opinion about whether the financial report is prepared in all material respects in accordance with a financial reporting framework, accounting standard and Corporation Act. Auditor cannot guarantee that financial report is free from error or fraud. Auditor cannot provide absolute assurance. 2. The duties of an independent auditor engaged to perform a financial report audit Report to members and express opinion whether the financial report is prepared in all material respects in accordance with a financial reporting framework, accounting standard and Corporation Act; 3. The Level of Assurance Services Reasonable assurance is the highest level of assurance. It means that the auditor has conducted audit procedures and gathered sufficient and appropriate evidence to provide an opinion on the truth and fairness of the financial reports. The auditor provides an opinion stated in the positive form. Such as financial statement audit. Limited assurance is a lower level of assurance. The auditor performs limited audit procedures and gathers less evidence. The auditor provides an opinion stated in the negative form. Such as review half year financial report. 1 Downloaded by Bo Bold ([email protected]) lOMoARcPSD|3484379
Image of page 2
4.Audit Expectation GapDefinition: the expectation gap that exists between what users expect of an auditor and the service auditorprovide. The gap is caused by unrealistic user expectationssuch as: the auditor is providing complete assurancean unqualified audit opinion is an indicator of complete accuracythe auditor will definitely find any fraud and the auditor has checked all transactions The expectation gap can be reduced by: 5.The demand for auditing can be explained by the following three theories: 2 Downloaded by Bo Bold ([email protected]) lOMoARcPSD|3484379
Image of page 3
Week 2 Ethics, Legal Liability and Client Acceptance 1) Fundamental principles Code of Ethics Integrity Objectivity Professional competence & due care Maintain knowledge and skill at a level required by professional bodies;
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 34 pages?

  • Three '16
  • Financial audit

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture