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Audit and especially internal audit is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Audits are performed on financial statements in order to:
- Prevent fraud
- Eliminate errors or mistakes from the bookkeeping process
Auditors must also ensure the information presented is:
- Accurate
- Reliable and valid
- Meets SEC requirements
- Adheres to GAAP
- Conforms to tax laws
- Passes industry regulations
- Discloses any events relevant to shareholders
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What is the meaning of financial statement level risk?
Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.
What is the difference between investigation audit and conventional audit in financial statement audit?
Purpose of investigation audit is to find out the evidance of the specific agenda for which investigative audit is conducted while conventional audit objective is to find out that financial statements represents the true and nature of business or not.
Differentiate between an unqualified and a qualified audit report?
Type your answer here... An audit report is said to be unqualified,when it is a clean report. Thus the auditor after examination of the organisation its record and financial statement comes to a conclsion that the financial statement reflects the true financial position of the business thats the financial statement have been prepard in accordance with the acceptable accounting principles. Qualified audit report on the other hand is a negative report which shows that the financial statement have not be prepare in accordance with acceptable accounting principles and the opinion of true and fare is not certain.
An audit of historical financial statements most commonly includes the?
Balance Sheet , Income Statement and Statement of Cash Flow.
What is qualified audit report?
Qualified audit report means that financial statement of business donot represent the true and fair activities of business
The purpose of an audit is to?
An audit is used to determine the fairness of a financial statement. Audits should be performed by an independent organization that is separate from the owner of the corporation.
What are the roles of international standards on auditing?
ISA 250 consideration of laws and regulation in an audit of financial statement
What is the key service provided by public accountants?
The financial statement audit is a key service of public accountants.
What are the advantages of gathering audit evidence?
1. It gives credibility to a financial statement 2. Identifies potential problem 3. Organizes financial information
Difference between cost audit and financial audit?
Cost audit is done to audit the cost elements of unit costs while in financial audit, audit of financial statements is done to find out information provided is true and fair or not.
What is an unqualified report?
unqualified report is that Audit report in which Audit opinion specify that according to according to rules and regulation the firms financial statement portray true and fair view.
What is unqualified report?
unqualified report is that Audit report in which Audit opinion specify that according to according to rules and regulation the firms financial statement portray true and fair view.
