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Question - AUDITING - To form an appropriate basis for expressing an opinion on the financial statements of a public company, an auditor must plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement due to error or fraud. Reasonable assurance is obtained by reducing audit risk to an appropriately low level through applying due professional care, including obtaining sufficient appropriate audit evidence.
In this regard, the objective of the auditor is to plan and perform the audit to obtain appropriate audit evidence that is sufficient to support the opinion expressed in the auditor's report.
a) Define what is meant by "audit evidence".
b) Explain sufficiency as it relates to audit evidence.
c) Discuss the qualities that are necessary for audit evidence to be appropriate.
d) Describe some specific audit procedures for obtaining audit evidence.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
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