Financial statements rely, Auditing

Assignment Help:

Financial Statements Rely

All Financial providers people must be sure that the financial statements can be relied upon.
It should be noted that:

1. The auditor himself must be independent to have credibility.

2. He must have the primary objective of producing a report of his opinion on the truth and fairness of the accounts, so that any person reading and using them can believe in them.

3. Subsidiary objectives can be seen to be the detection of errors and fraud, the prevention of errors and fraud by the deterrent and moral effect of the audit and the ability to provide other benefits to his clients such as:

    • Assistance with accounting;
    • Systems;
    • Taxation;
    • Financial and other problems.

The Companies Act was designed to protect shareholders from directors hence the need for an audit as contained in the Companies Act mainly relates to limited liability companies, but as we shall see any organization can benefit from an audit.


Related Discussions:- Financial statements rely

Relevance - sources of evidence, Relevance - Sources of evidence The a...

Relevance - Sources of evidence The auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information contain

Stock taking - audit process, Stock Taking - Audit Process The proced...

Stock Taking - Audit Process The procedures for carrying out physical stock taking vary in detail according to the circumstances and size of the business and the life of its

Adjusting events - audit process, Adjusting Events - Audit Process Adj...

Adjusting Events - Audit Process Adjusting events are those such give evidence of conditions such existed at the balance sheet date as the settlement of a court case than the

Business risk approach, Business Risk Approach This approach requires t...

Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c

Auditor, The most effective means for an AUDITOR to confirm his understandi...

The most effective means for an AUDITOR to confirm his understanding how internal control over financial reporting is designed and operates to test and evaluate its effectiveness.

Audit of partnerships, Audit of Partnerships The audit of a partnership...

Audit of Partnerships The audit of a partnership is not normally required by statute and so the auditor must agree with the client what his rights and duties are going to be. T

Provision and accruals, Provision and Accruals Previous to we consider...

Provision and Accruals Previous to we consider the audit procedures along with regard to accruals and provisions, it is essential to clarify the meaning of two words in genera

Audit risk, AUDIT RISK As we have seen many parties rely on the audit o...

AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion

Audit procedures for obtaining audit evidence, Question: Part A (i...

Question: Part A (i) List and define five audit procedures for obtaining audit evidence. (ii) Why is it necessary to obtain corroborating evidence for inquiry and obser

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd