COMM 455 Lecture Notes - Lecture 2: Audit Risk, Financial Statement
Document Summary
Auditor: render an opinion on f/s not making sure if f/s are correct or not. Fair presentation, comparable, understandable, reliable, relevant to users. Express an opinion on f/s; in accordance with canadian gaap; Comply with ethical requirements; plan and perform the audit; Obtain reasonable assurance; conclude whether consolidated f/s are free from material misstatement. Professional skepticism (questioning mind), professional judgment (experience), due care and attention. 85% of audit is done by people with less than 5 years experience problem on big audits. If they are effective or not: stronger control, better it is to achieve company"s objectives. Evidence is sufficient (enough?) and appropriate (right kind)? enough. Don"t trust management, there is bias, risk: disconnect between management and owns or other stakeholders. Maximum amount that auditor is okay with, let it pass. Audit risk risk that an auditor issues an unmodified audit report when the financial statements contain a material misstatement. Mining client lots of risk with impairment.
