RSM423H1 Chapter Notes - Chapter 16: Financial Statement Analysis, Audit Evidence, Financial Statement
Document Summary
Applying professional judgment to form the audit opinion and issue the audit report. To achieve the overall objective of an audit, the auditor needs to formulate and report an audit opinion on the financial statements. In reaching this goal, auditors need to exercise professional judgment and maintain professional skepticism throughout planning and performing the audit. Professional skepticism refers to an auditor attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence. Auditor judgments include evaluating the auditee management"s judgments in applying accounting policies, making accounting estimates, and preparing the financial statements and notes. Auditor judgments are made by considering such issues as those following: Did the auditor consult, and is this documented? ( fly alone; die alone ) Applying professional judgment to form the audit opinion.
