Question

Audit

Describe the purpose and Value of a Financial Statement Audit

Recognize an integrated audit report and a Financial Statement Audit report

List the 4 types of opinions

Identify the governing and standard setting entities for financial accounting and audit oversight.

Identify the link between accountants and auditors

Identify other types of audits

               Forensic

               Internal

               Governmental

Identify other services performed by accountants and auditors

Answer 1

The purpose of an audit is to provide the financial statements users with auditor’s opinion on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework. This enhances the degree of confidence that intended users can place in the financial statements. However, note that an audit of the financial statements does not assure the future viability of the entity nor the efficiency or effectiveness with which management has conducted the affairs of the entity. Nevertheless, in some circumstances, applicable law or regulation may require auditors to provide opinion on other specific matters (e.g., effectiveness of internal controls) where the auditor would undertake further work given the responsibilities to provide such additional opinion.

An audit primarily is an inspection of an organization's accounts. The value of an audit is that it helps companies and their stakeholders accurately and objectively measure financial performance and determine the accuracy of their records.

SOX / PCAOB AS requires integrated audit for SEC registrants such that the auditor provides opinion on client’s the financial statements as well as the effectiveness of client’s internal controls over financial reporting. A financial statement audit is an audit of the financial statement audit only.

The four types of opinions are 1) Unqualified opinion 2) Qualified opinion 3) Adverse opinion 4) Disclaimer of opinion.

Financial accounting is governed by the US GAAP and PCAOB AS for non-issuers and issuers respectively. Audits are governed by USGAAS and SOX/PCAOB AS for non-issuers and issuers respectively.

I have answered 4 questions instead of 1 out of 7. Please note for each additional question you need to create separate questions.