The auditors consideration of materiality is a matter

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Unformatted text preview: iality, audit risk, and evidence. Chapters 3 through 5 cover these concepts in greater depth. An Overview of the Financial Statement Audit Process Management Terms of Engagement Implements internal controls Conducts transactions Accumulates transactions into account balances Obtains evidence nce de Evi s As s Determines overall fairness of financial statements n atio unic m mes25435_ch01_001-032.indd mes25435_ch01_001-032.indd 14 Tests management assertions against criteria (GAAP) on ti er Prepares financial statements Issues financial statements to users Auditor Com Issues audit report to accompany financial statements 26/05/11 9:24 PM Confirming Pages Chapter 1 An Introduction to Assurance and Financial Statement Auditing 15 Materiality The first major concept involved in auditing is materiality. The auditor’s consideration of materiality is a matter of professional judgment. It reflects what the auditor perceives as the view of a reasonable person who is relying on the financial statements. The Financial Accounting Standards Boar...
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