Audit Summary
SUMMARY OF KEY POINTS
OVERVIEW OF FINANCIAL STATEMENTS AUDIT * The audit enables the auditor to express an opinion whether financial statements are prepared, in all material respects, in accordance with and acceptable financial reporting framework. * Complete set of general purpose financial statements: * 1. balance sheets * 2. income statements * 3. statement of changes in equity * 4. cash flow statement * 5. summary of significant accounting policies and other explanatory notes
Ethical principles governing the auditor’s professional responsibilities 1. Independence 2. Integrity 3. Objectivity 4. Professional competence and due care 5. Confidentiality 6. Professional behavior 7. Technical standards
Three fundamental concepts of financial statement audit * 1. materiality * 2. audit risk * 3. evidence * The auditor’s judgment of materiality and audit risk establishes the type and amount of the audit work to be performed (referred to as scope of the audit). In establishing the scope of the audit, the auditor must make decisions about the nature, timing and extent of evidence to be gathered.
PHILIPPINE STANDARDS OF AUDITING * -which contain basics principles and essential procedures together with related guidance in the form of explanatory and other material.
The auditor is also aware and considers Philippine Auditing Practice Statements (PAPS) applicable to the audit engagement, providing interpretative guidance and practical assistance to auditors in implementing PSAs. * * The auditor should plan and perform the audit with an attitude of professional skepticism recognizing that circumstances may exist which cause the financial statements to be materially misstated.
Three important concepts underlie the assurances that the auditor makes to user of financial statements. 1. On the basis of evidence gathered, which include sampling. 2. The auditor provides reasonable
OVERVIEW OF FINANCIAL STATEMENTS AUDIT * The audit enables the auditor to express an opinion whether financial statements are prepared, in all material respects, in accordance with and acceptable financial reporting framework. * Complete set of general purpose financial statements: * 1. balance sheets * 2. income statements * 3. statement of changes in equity * 4. cash flow statement * 5. summary of significant accounting policies and other explanatory notes
Ethical principles governing the auditor’s professional responsibilities 1. Independence 2. Integrity 3. Objectivity 4. Professional competence and due care 5. Confidentiality 6. Professional behavior 7. Technical standards
Three fundamental concepts of financial statement audit * 1. materiality * 2. audit risk * 3. evidence * The auditor’s judgment of materiality and audit risk establishes the type and amount of the audit work to be performed (referred to as scope of the audit). In establishing the scope of the audit, the auditor must make decisions about the nature, timing and extent of evidence to be gathered.
PHILIPPINE STANDARDS OF AUDITING * -which contain basics principles and essential procedures together with related guidance in the form of explanatory and other material.
The auditor is also aware and considers Philippine Auditing Practice Statements (PAPS) applicable to the audit engagement, providing interpretative guidance and practical assistance to auditors in implementing PSAs. * * The auditor should plan and perform the audit with an attitude of professional skepticism recognizing that circumstances may exist which cause the financial statements to be materially misstated.
Three important concepts underlie the assurances that the auditor makes to user of financial statements. 1. On the basis of evidence gathered, which include sampling. 2. The auditor provides reasonable