ACCT 3280 Chapter Notes - Chapter 1: Audit Evidence, Financial Statement, Internal Control
21 Dec 2015
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Document Summary
Assurance is an engagement where auditor or consultant is hired to provide an opinion on a subject matter. Accountability relationship: one party is answerable to another for the subject matter. Must be an accountability relationship where a person or organization is responsible to the users for subject matter. Financial statement audit: company is accountable party, shareholders are the users, subject matter is the f/s o. Assertions: statements made about the recognition, measurement and presentation and disclosure. Audit evidence: info sued by auditor to support opinion. Audit file: evidence and documentation of work kept permanently. Audit risk: risk the auditor may express an inappropriate opinion. Independent auditor"s report: formal expression of opinion on f/s. Internal control: process implemented and maintained by management to help achieve entity"s objectives. Material: amount or disclosure significant enough to make a difference. Sufficient and appropriate evidence: quantity (sufficiency) and quality (appropriateness) of evidence collected. Unmodified opinion: auditor"s opinion concluding f/s are fairly presented.
