ACTG 3P11 Lecture Notes - Lecture 1: Financial Audit, Financial Statement, Accounting
30 Jan 2019
School
Department
Course
Professor
Document Summary
Practitioner is engaged to issue a report expressing a conclusion on subject matter for which an accountable party is responsible, for the purpose of enhancing the degree of confidence of the intended users. In other words: hire an auditor to give opinion on information. Performed when info will be relied on by external parties. Channel stuffing: selling stuff to people who haven"t actually bought it. Possibility of inaccurate info used for decision making. Improves usefulness of financial statements by providing independent 3rd party opinion of whether statements contain misstatements, and in accordance with accounting principles. Investors want verification that net income is accurate. Rules for conducting assurance engagements and issuing reports. Accountants must hold current public accounting licence (pal) Does not require pal, unless relied on by 3rd parties. Cannot be associated with info that you know is false or misleading. Consents to use of member or firm name. Counting consignment goods as inventory my participation.
