MGT321H5 Lecture : lecture 1
Document Summary
The overall objectives of the auditor are: to obtain reasonable assurance that f/s"s (to reduce audit risk as much as possible): Free from material misstatement: enabling the auditor to express an opinion, are in accordance with financial reporting framework, to report on the f/s"s and communicate the auditor"s findings. Management must have good internal controls in place in order to meet objectives. Integrity, objectivity, professional competence, due care, confidentiality, professional behavior. Enough quantity and good quality reduce audit risk. Technical training, proficiency in auditing, due care, objectivity. Understand the entity"s environment, internal controls, assess the risks of a material misstatement. Understand and comply with recommendations in the cica handbook. Understand and comply with all cass relevant to the audit. Objective: establish and maintain a system of quality control. Elements of a system of quality control see qc basics p. 16 (establish policies and procedures) 1- leadership: quality is essential, require ceo"s or equivalent to assume ultimate responsibility.
