ADMS 4551 Chapter Notes -Accountant, Financial Statement

• School: York University
• Department: Administrative Studies
• Course: ADMS 4551
• Professor: Larry Yarmolinsky

Document Summary

Some organizational structure allows for protection from lawsuits to individual firm members. Canadian auditing standards require that the audit be conducted using a risk assessment approach. First, the auditor must identify and assess the potential risks of material misstatement in the financial statements. Based upon these risks, the auditor will provide a risk response, which includes the design and execution of the evidence gathering process to assess the likelihood of these material misstatements actually occurring. The auditor continually evaluates the evidence to enable preparation of the audit report. The audit report is an opinion, not a guarantee, that provides reasonable assurance that the financial statements are free of material misstatement. Assurance standards are issued by the auditing and assurance standards board, and are the requirements underlying the audits, assurance engagements, and related services activities carried out by public accountants, and are considered to be authoritative requirements.