Usually, in most countries, every company is obliged by law to prepare its annual financial statements as well as get them audited by a statutory auditor. The responsibility of a statutory or independent or external auditor, as per the International Standards of Auditing (ISA), is to obtain all relevant information from the management and those […]
Professional Judgment in Auditing – What Is It? (Usages included) Read More »
An Independent Auditor’s job is to give reasonable assurance that a company’s financial statements give a true and fair view. Reasonable assurance is a high level of assurance but not the absolute level of assurance due to the inherent limitations of an audit. To achieve a high level of assurance, the International Standards of Auditing
Professional Skepticism in Auditing – Why Is It Necessary? Read More »
Financial Statement Assertions are the claims that are made by the organization’s management pertaining to the financial statements. These assertions form a consolidated basis from which external auditors are able to develop a set of audit procedures. Therefore, it can be seen that when management prepares financial statements, they make five assertions regarding each line
What Are the 7 Financial Statement Assertions? (Explanation) Read More »
At each financial year’s end, every company must get its accounts and books audited. During an audit, your auditor inspects and accumulates all your financial data regarding business transactions throughout the year and evaluates the information gathered for accuracy and genuineness. Becoming an auditor requires a great deal of knowledge regarding tax and accounting standards
4 Types of Auditors – What do they do? Read More »
Introduction: Companies have an internal audit to evaluate their internal controls, like corporate governance and accounting processes. The main purpose of internal audit is to provide the company with independent assurance that its risk management, corporate governance, and internal control processes are operating effectively. The internal audit ensures that rules, regulations, and laws are being
What Are the Advantages and Limitations of Internal Audit? Read More »
Definition: An unqualified audit opinion is an opinion auditors give after testing the audited financial statements containing no material misstatement. Those statements are prepared and presented by following all the applicable financial reporting frameworks or standards and complying with the applicable regulation. The opinion statement is normally attached to the audit report issued by auditors
Overview Entity’s financial statements are normally audited annually by an independent audit firm as per management’s intention, the board’s requirement, and or by law. Big four audit firms are the well-known auditors that provided audit services. Basically, if auditor found no major issue on the financial statements they will issue the unqualified report. Unqualified Audit
Unqualified audit report: Why is it important? Read More »
The auditor could obtain audit evidence from many different sources, such as their own testing or external independent sources. The result from their own testing includes their reviewing the client’s internal control over financial reporting during the planning stage. Or through performing audit procedures such as inquiry, observation, inspection, recalculation, re-performance, and confirmation as we
Source of Audit Evidence – What Are the Main Sources? Read More »
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness risks management, control and governance processes. The above is the definition of internal audit and this definition
Who should the internal audit leader functionally report to? Read More »
Overview: Financial statements auditing is normally performed by an independent and qualified audit firm or company. Audit firms are normally led by audit partners who are certified, public accountants. Financial statements normally must be audited annually and reported to the board of directors and other related users. The entity prepares its financial statements by complying
Fundamental Processes in an Audit of Financial Statements You Should Know Read More »