Audit Responsibilities & Objectives

Nikolette Baniewicz

Assignment #2

6-31

A) 9 – Occurrence (Transaction-Related)

B) 6 – Detail tie-in (Balance-Related)

C) 14 – Posting & Summarization (Transaction-Related)

D) 15- Occurrence & Rights (Presentation & Disclosure)

E) 10 – Completeness (Transaction-Related)

F) 7 – Realized Value (Balance-Related)

G) 5 - Cutoff (Balance-Related)

H) 1 – Existence (Balance-Related)

I) 16 – Completeness (Presentation & Disclosure)

J) 14 – Posting & Summarization (Transaction-Related)

K) 1 – Existence (Balance-Related)

L) 18 – Classification (Presentation & Disclosure)

Research Problem 6-1

a.

According to the International Standards on Auditing: “In conducting an audit of financial statements, the overall objectives of the auditor are:

(a) To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework; and

(b) To report on the financial statements, and communicate as required by the ISAs, in accordance with the auditor’s findings. Source: Handbook of International Quality Control, Auditing, Review, Other Assurances, and Related Services Pronouncements, ISA 200, page 73, Issued by the International Federation of Accountants (September 2013).

According to the AICPA auditing standards, “The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial accounting framework, which enhances the degree of confidence that intended users can place in the financial statements.” Source: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted...