acc562 week 1 discussion 1

acc562 week 1 discussion 1 - financial statements. Uers of...

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Should auditors evaluate the soundness of a client’s business model? Choose a position and defend it. Auditors should evaluate the soundness of a client’s business model. A business model is an important consideration in business risk and how they relate to risks of material misstatement assessment. The soundness of a business model could reduce business risk and audit risk. The primary responsibility associated with the auditor is the duty to report on the truth and firness of the financial statements. The auditor has a duty to issue an opinion on certain other matters and to report any reservations. In addition, current auditing standards require that independent auditors provide reasonable assurance that the financial statements are free from material misstatements, whether caused by error or fraud, to render an unqualified opinion on the
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Unformatted text preview: financial statements. Uers of these companies finanicial information, such as potential investors, stockholders, creaditors and the general public, rely on the auditor to present an unbiased and independent evaluation on such companies. Thus, for ensuring a companys financial statements fairly present financial position and results of operations, auditors should have an understanding of the clients business and industry, the systems employed to process transactions, the quality of personnel involved in accounting fuctions, the clients policies and procedures related to the preparation of financial statements, and much more. Auditors are also required to gain a more thorough understanding of the client and to evaluate the design effectiveness of internal control....
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This note was uploaded on 02/01/2012 for the course ACCT ACC562 taught by Professor Williamguy during the Fall '10 term at Strayer.

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