Chapter 1.3 - Objectives Of External Audit Flashcards
1
Q
Objective of an audit
A
Enable the auditor to express an opinion whether FS are prepared in accordance with applicable financial reporting, in all material respect.
2
Q
Objective of external auditors
A
Obtain reasonable assurance
FS free from material misstatement, due to fraud/error
3
Q
True (and fair view)
A
Information is
- factual & conforms with reality
- conforms with required std & law
- correctly transferred from Accounting Records to FS
4
Q
(True and) Fair view
A
- Free from discrimination & bias
- Reflect commercial substance of transaction (not legal substance)
