MGT321H5 Lecture Notes - Lecture 1: Financial Statement, Kpmg, Halti
Document Summary
Billionaire goes to world vision and says will donate 3 million dollars to build school and gets agreement ready. One year from now, billionaire wonders if school is made and funds appropriately used therefore hire kpmg to audit. There may have been provision in agreement for donor to audit world vision for use of money. Kpmg create report to say how the 3 million was used and provide assurance of its use. International standards of auditing (isa) equivalent to canadian auditing. Whenever provide assurance need: assertions = evidence that inventory exists, criteria = should be provided in agreement. Bias: geographic remoteness : e. g. british investors invest in canada, geographically cannot tell what"s happening without doing an audit. Stewardship/agency: give someone else your money and utilize it to make decisions on your behalf therefore act as an agent. Info hypothesis: if info audited therefore reduce risk because better information is avail. Operational audit: whether mandate being met and value of money.
