Psa 200 Summary
Philippine Standard on Auditing 200 – Overall objectives of the independent auditor and the conduct of an audit in accordance with Philippine standards on auditing
Scope of the PSA – identifies the nature and scope of the PSA’s +++>> to establish the objectives and responsibilities of an auditor.
An Audit of Financial Statements
3. The purpose of an audit is to enhance the degree of confidence of the intended users in the financial statements through the auditor’s opinion.
4. The management of the entity or those in charge of governance, which provides for the FS is assumed to have the responsibilities that are fundamental to the conduct of an audit.
5. Audit assurance is a reasonable assurance because it is based on evidences that are persuasive rather than conclusive.
7. Professional judgment and professional skepticism:
A. Identify material misstatements
B. Obtain sufficient appropriate audit evidence regarding (A)
C. Form an opinion of the FS
Overall Objectives of an Auditor
A. To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error
B. When reasonable assurance cannot be expressed under certain circumstances then the auditor should disclaim an opinion and withdraw from the engagement if legally permitted.
13. Terms
A. Applicable financial reporting framework – acceptable in view of the nature of the entity and objective of the financial statements or required by law or regulation
Fair presentation framework – (a) fair presentation of FS; (b) disclosure beyond what the framework requires to achieve fairness; (c) Depart from AFRF to achieve fairness (only in rare cases)
Compliance Framework – compliance with AFRF but not with B and C of Fair PF
B. Audit Evidence
a. sufficiency of audit evidence = quantity; risk of material misstatement and quality of such evidence
b. Appropriateness of an audit = quality
C. Audit Risk – auditor
Scope of the PSA – identifies the nature and scope of the PSA’s +++>> to establish the objectives and responsibilities of an auditor.
An Audit of Financial Statements
3. The purpose of an audit is to enhance the degree of confidence of the intended users in the financial statements through the auditor’s opinion.
4. The management of the entity or those in charge of governance, which provides for the FS is assumed to have the responsibilities that are fundamental to the conduct of an audit.
5. Audit assurance is a reasonable assurance because it is based on evidences that are persuasive rather than conclusive.
7. Professional judgment and professional skepticism:
A. Identify material misstatements
B. Obtain sufficient appropriate audit evidence regarding (A)
C. Form an opinion of the FS
Overall Objectives of an Auditor
A. To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error
B. When reasonable assurance cannot be expressed under certain circumstances then the auditor should disclaim an opinion and withdraw from the engagement if legally permitted.
13. Terms
A. Applicable financial reporting framework – acceptable in view of the nature of the entity and objective of the financial statements or required by law or regulation
Fair presentation framework – (a) fair presentation of FS; (b) disclosure beyond what the framework requires to achieve fairness; (c) Depart from AFRF to achieve fairness (only in rare cases)
Compliance Framework – compliance with AFRF but not with B and C of Fair PF
B. Audit Evidence
a. sufficiency of audit evidence = quantity; risk of material misstatement and quality of such evidence
b. Appropriateness of an audit = quality
C. Audit Risk – auditor