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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is an auditor? |
Individual/s who conduct an audit, obtaining reasonable assurance that the financial statements of a company are free from material missatement. |
Reasonable assurance |
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Internal Auditor |
Employee of a company who provides independent, objective assurance and consulting services designed to add value an improve operations. |
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Government auditor |
Objectively performs investigations of local and national governments. |
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What is SA's government auditor |
Auditor-General (AG) |
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Forensic auditor |
Performs an independent investigation into fraud and fraudulent activities. |
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External auditor |
Employee of an external audit firm and not of the entity under audit. Independent and provides assurance |
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Name the stakeholders in an audit |
The auditor The shareholders The board of directors |
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The role of an auditor |
Obtaining audit evidence to give reasonable assurance to the shareholders regarding the fair presentation of the financial statements |
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What are the roles of the shareholders |
They are the owners of the company and provide the financing for the company. Thy receive the audit report. |
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Wat are the role of the BoD |
They are appointed by the shareholders and are responsible for running the company and preparing the financial satements for the auditors to audit. |
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What is theobjective of an auditor |
To obtain reasonable assurance that the financial statements are free from material misstatement, and giving an audit opinion over the statements on wheteher they are prepared in accordance to the relevamt frameworks |
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What are assertions |
Representations made by management |
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Name the assertions relating to account balances |
Completeness Classification Presentation Rights Accuracy, valuation and allocation Existence |
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Name the assertions relating to classes of transactions |
Completeness Classification Presentation AccuracyCut offOccurrence Accuracy Cut off Occurrence |
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What is assurance |
Intended to give/enhance confidence |
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Why can we only give reasonable assurance |
We can not audit evey line item an give absolute assurance that the financial statements are completely free from material misstatements |
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Wht needs to be present for an assurance engagement to exist |
Three party relationship Appropriate subject matter Suitable criteria Evidence Assurance report |
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What is a jon-assurance engagement |
No opinion is expressed. Compiling financial statements, consulting, advisory. |
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