(Company report) (General Answer) Name the Audit firm responsible for performing the audit of the financial...
(Company report) (General Answer) Name the Audit firm responsible for performing the audit of the financial statements of the company. Explain why the auditor must declare their independence, and also explain why the financial statements must be audited by an external party.
Homework Answers
The objective of audit is to provide reasonable assurance that the financial statements are free from material misstatements whether due to fraud or error. The audit must be performed by Firm of CPA's (Certified Public Accountants).
Audit involves expressing an opinion over financial statements of company to add to justification and credibility to financial statements.
Independence refers to the auditor's ability to present his opinion about the reliability of financial statements honestly and impartially away from his interest or the pressure of clients.
Following are the examples of threats to the independence of auditors:
1. Business Relations with client.
2. The tenure of Audit Firm.
3. The results of Gift.
Thus to prevent the objective of the audit and conflict of interest it is necessary that it must be performed by the person external to the entity. Auditor should declare their independence to create a faith as an external check over financial information prepared by the entity.
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(Company report) (General Answer) Name the Audit firm
responsible for performing the audit of the financial...
For questions 11 to 13, match the responsibility of the audited financial statements with the responsible...
For questions 11 to 13, match the responsibility of the audited financial statements with the responsible party: Responsible Party 11. Management's responsibility regarding audited financial statements. 12. Independent auditors responsibility regarding audited financial statements 13. Audit committee responsibility regarding audited financial statements Responsibility A. Fairness of the financial statements B. Oversight and monitoring C. Issue a report in accordance with generally accepted auditing standards (GAAS)
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Principles of auditing Ch3
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Principles of auditing Ch3
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0 Required information Sections of an Audit Report for a Nonpublic Company Read the overview below and complete the activities that follow. The end product of an audit is a report expressing the auditor's opinion on the client's financial statements. A standard report includes an unqualified opinion (for a public company audit) or an unmodified opinion (for a nonpublic company audit) indicating that the audit was adequate in scope and that the financial statements present the financial position results of...
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