Auditing - Fundementals Flashcards
1
Q
What is Financial auditing ?
A
The examination and review of the financial statements in order to obtain a reasonable assurance about whether the FS are free from material misstatements and issue an independent opinion regarding the fairness and accuracy in accordance with GAAP
2
Q
What are the type of the auditor’s opinion ?
A
Unqualified , Qualified ,Adverse, disclaimer
3
Q
When we express an unqualified opinion ?
A
FS are fairly presented and in accordance with GAAP
4
Q
When the auditor express a qualified opinion ?
A
FS are fairly presented except :
- material misstatement found
- inability to obtain sufficient evidence in a transaction, accounting policy, balance or disclosure
5
Q
Adverse opinion ?
A
Financial statements are not fairly presented
6
Q
What is Disclaimer of Opinion ?
A
the auditor refuses to express opinion :
- risk of independance
- material misstatements
- doubt regarding the going concern
7
Q
What is the audit process ?
A
1- Accepting the engagement 2- Audit planning : prepare audit strategy 3- Evaluate Internal Control 4- Substantive testing 5- Review & Reporting
