If the auditor believes that the financial statements are not fairly stated or

If the auditor believes that the financial statements

This preview shows page 21 - 24 out of 70 pages.

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor: Tests of details of balances are specific audit procedures that are intended to:
Image of page 21
Which of the following statements isnotcorrect? Two overriding considerations affect the many ways an auditor can accumulate evidence: If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control, assessing control risk, testing controls, and analytical procedures, then the auditor: ///can significantly reduce other substantive tests. After the auditor has completed all audit procedures, it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented. This is a highly subjective process that relies heavily on: When an auditor has reduced assessed control risk based on tests of controls, he or she may then reduce the extent to which the accuracy of the financial statement information directly related to those controls must be supported through the accumulation of evidence using substantive tests. For a private company audit, tests of controls are normally performed only on those internal controls the auditor believes have not been operating effectively during the period under audit. Rights and obligations is the only balance-related assertion without a similar transaction related assertion. ///True
Image of page 22
The audit objectives are the well-defined methodology for organizing an audit to ensure that the evidence gathered is sufficient and appropriate.
Image of page 23
Image of page 24

You've reached the end of your free preview.

Want to read all 70 pages?

  • Fall '17
  • Auditor's report

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture