AFM202 Study Guide - Fall 2018, Comprehensive Midterm Notes - Financial Statement, Accounting, Property Income

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM202
• Professor: Alan Mc Naughton

Document Summary

Sufficiency is the measure of the quantity of audit evidence. The assessment of risks is based on audit procedures to obtain information necessary for that purpose and evidence obtained throughout the audit. This is because there are inherent limitations of an audit, which result in most of the audit evidence on which the auditor draws conclusions and bases the auditor"s opinion being persuasive rather than conclusive. The inherent limitations of an audit arise from: the nature of financial reporting, the nature of audit procedures; and, the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. A cas is relevant to the audit when the cas is in effect and the circumstances addressed by the. In the case of a public sector entity, legislators and regulators are often the primary users of its financial statements. Furthermore, the financial statements may be used to make decisions other than economic decisions.