Question

1. What is management responsibilities for the financial statement being audited?
2. What are auditor’s responsibilities for the financial statement being audited?
3. What is the difference between error and fraud?
4. What is auditor’s responsibility for finding error and fraud?
5. Define what is meant by management assertion about financial statements
6. List and explain the PCAOB five categories of management assertions
7. How does the PCAOB assertions differ from the International and AICPA assertions?

Answer 1

Date : Page No. pon- What di manajement Gesponsibilities for the financial statement being auditeel? Anywheese Followrey are the responsibilines of the management * Financial statement should be un accordance with accounting principles and on consistent basis. And the prinuples which are particular to company should be mentioned in Note for the finanual statement & Management in allo responsible for the objectivity I and integrity of finanual statements al estimates are vred then there should be internal control to provide masonable assurance & Boad of Directors are responsible to take care is the requirements of finanual statement are fulfilled or not the audit committee of board should meet regularly with management and Shareholders to desils audit matters. It also veeviews the annual financial statiment and reporting to board Management follows it reponsibility by Conduching the organisation's affairs in compliance ! with the applicable laws

Date Page No. 1 Nutrition - What a curhat aue auditor's responsibilities for the hinanual statement being audited2 following are the eleponci bilities of auditor The following are the Ar The critical lepontibity of auditor ut and perform the audit of finanual itatements to un order to alsure whether th francial statements are free of miestatement Whether caused by fraud or an error rred by * Auditor's sit responsibility is to form an opinion on the financial statement being bree the company In accordanu with the generally accepted auditing standard the auditor must exerise This judgement with reasonable opinion In case of any d'y creepancy un futurel, it will be blamed on auditor Austion: What ů the difference between eveor and fraud? Aneuter's fraud can be any form of falsification or I alteration of accounting records of the finanual statement. ebample Anadvertently taking an expense to the wrong account errors are not deliberate it in the unintentional misstatement of hinanual statement for example by mistake tyking the digits incorrectly. ni ed with Scanner

1 Date : Page No. Glutin:- What i cuditor's weaponcibility for finding error and fraud? Anuger Auditing standard CAS) 1001 Responsibilities and functions of the independent auditor, clearly mentions that " Auditor has the responeibilite I to plan & perform the audet to obtain masonable Lasuranu about whether the finanual statement are free of material mistatement, whether careed by beveor for or fraud e | In other words, the cesponibility w related to detection In case of fraud, tome auditon maintain that they have no responsibility, it is powble only when the fraud muut mistate the finanual statements, mistatement must be material. lustion - Refine wheet u meant by manament assertiones about financial statement Anewer the assentions can be classified into three Categories at 1 transaction level assertions Account balance asutions 34 Presentation and diordodu du closure assertions Zrancation level assertions uncludes accuracy of Mecord without any error, classification within correct accounts engineel ledper completeness i records eutable? correct sporting period and occurensele CamScann

I Date: Page No ccount huition that business trense ction Riorded when but actually took place Auoint te balance assertion uneludes completeness Hall v posted asset, liability and equity Tulle than wistenie té assection that a re balances exits for asset, balilibes gear and valuation de 800 Rights and obligation aucets, lalithes and equity have been recorded at their proper valuations Tusentation and disclosure assextiony! - y Accuracy :- avertin that wipomalim wicomet amount completeness assertion that all brasactions disclosed - Occurany assertion that rasanctions ollwed monite Rights & obligations assention that obliged to reporting, Understandablite-asseeting that information en tinancial statement has been - Lugntly presented wita Austient List and explain the PLAOB five categories of management assertion Tunel 1) Existence or occurence; - The times and dates of an I asset or liability of a company exist at a given date and were recorded 2) Completeness: All statements required are included and they pertain to thrace accounts ou transactione necessary for auditor's for making a judgement.

/ Dato: / Page No. 1) Valuation ou Allocation Assertion that asset, - liability, equity that occur in financial Statements are comméet and appropete amount 4) Right and obligations i Assention that company us in contred of specified asset or liabiliter at a given date Lo Presentation and disclosure Assertion that componente of the financial statement que properly classified described and discloud Austion 7 - How does the PLAOB assertion differ feom the International and AICPA assertions nuper - The International and AICPA assentions I differ from that of PLAOB as they have two different classes for assedion, un addition to account balance. Those two different classeses are of transaction and events which are classification and cutoff the othere differte difference are additional assertion about presentin and diclosuresina Scanned with CamScanner