Overview: Audit Reports on the financial statements can be used for many different purposes, and for many different requirements. For example, it is required by the board of directors, shareholders, the entity’s board of management, as well as general tax department. These entities use the audit report to assess the quality of information that is […]
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Definition: Audit risk is the risk that auditors issue an incorrect audit opinion to the audited financial statements. For example, auditors issued an unqualified opinion to the audited financial statements even though the financial statements are materially misstated. In other words, the material misstatements of financial statements fail to identify or detect by auditors. Or
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Overview: An internal Audit Charter is a formal document describing the primary purpose of an internal audit, its right, obligations, reporting line, authority, and code of ethics that an internal auditor should have. Generally, this document is approved by the audit committee and the board of directors. This document helps other departments, executive officers, and
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Overview: IIA Code of ethics has a similar objective to other codes of ethics. Its main objective is to promote the ethical activities that perform by organizations or individuals which provide internal audit services. The four typical common Internal Auditor codes of Ethics provided by IIA are Integrity, Objectivity, Confidentiality, and Competency. This Code of
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Definition: Internal audit is an independent and objective consulting service, which is designed to add value to the business and improve the entity’s operation. It provides a systematic and disciplined approach to evaluating and assessing risk management, internal control, and corporate governance. Internal audit activities are generally focused on three principles areas including, but not
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Definition: In accounting, going concerned is the concept that the entity’s Financial Statements are prepared based on the assumption that the entity operation is still operating normally in the next foreseeable period. This foreseeable period normally has twelve months from the ending period of Financial Statements. In order to assume that the entity has no
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This is the summary of ISA 210: Agreeing with the Term of Audit Engagement. In this summary, we follow the structure of ISA which starts with an Introduction, Objective, Definition, and Requirement. You may jump to the specific areas as your requirement. The summary here does not include all the standard points and is for
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Financial Due Diligence is one of the review engagements usually requested by potential investors to perform a financial review of the target company. Financial Due Diligence usually is concerned with reviewing and identifying the targeted company’s Financial Position, and potential hidden liabilities like continence liabilities which are not stated in the Financial Statements and financial
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This is the complete summary of ISA 200, Overall Objectives of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing. The summary follows the standard structure of ISA which starts from Introduction, and follow by Objective, Definition, Requirement, and finally Application of Standard. Introduction Overall responsibilities of auditor auditing
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This is the Summary of SA 720, The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. The summary here follows the standard structure of ISA which is followed by the Introduction, Objective, Definitions, and Requirement of this standard. The summary here is just for your quick check, and the full standard is