Question

Identify and describe the four presentation and disclosure audit objectives. Explain how many of the procedures to test presentation and disclosure audit objectives are integrated with tests performed in earlier stages of the audit

Answer 1

Four presentation and disclosure audit objectives including examples and auditor work

Rights and Obligation-: Disclosed events and transactions that have been occurred in the financial statement. Example-: Review of borrowings agreement to ascertain secured/unsecured borrowings. Auditor should check loan sanction letters to ascertain the entity obligation.

Completeness-: The disclosure that must have been included is in fact included. For example-: Disclosures required by accounting standard are included in the financials. Auditor should make the checklist to identify each disclosures. Checklist will help auditor to identify missed disclosures.

Classification and Understand ability-: Notes in the financial statements should have been clearly disclosed in the financials. -: Classification of assets and liabilities into current and non-current. Auditor should carefully check the foot notes. Cash and cash equivalent must be clearly shown in financials.

Accuracy-: The figures in the financial statement are correctly stated at fair values and without error. Example-: figures should match with foot notes and borrowings notes are in line the debt agreement. Auditor should check each agreement at the time of audit.