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Unformatted text preview: ﬁlter.”
A lower materiality amount requires the auditor to use a ﬁner ﬁlter in order to
detect smaller errors, and it takes more work to create a ﬁner ﬁlter. Similarly,
as the desired level of assurance increases for a given materiality amount, the
sample size necessary to test an assertion becomes greater. The Audit Process
LO 8 Now that we have explained some of the fundamental concepts of auditing, this
section provides an overview of how auditors go about the process of auditing
ﬁnancial statements and then presents the major phases that the auditor performs during a ﬁnancial statement audit. Later chapters provide detailed coverage of the process and the phases of the audit. Overview of the Financial Statement
Consider the auditor’s task from a logical perspective. The end product of a ﬁnancial statement auditor’s work is an audit opinion indicating whether or not the
client’s ﬁnancial statements are free of material misstatement. What might an
auditor do to obtain the information...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.