incorrect step 4 questions Flashcards
main objective of a statutory audit
to express an independant opinion on the FS
Who should the internal audit auditors report to
board of directors or audit committee
what do management have responsibility for in the managements agreement with the auditors
responsibility for preparing the FS
responsibility to enable prep of FS free from material misstatement
responsibility to provide all info to audit
what do management NOT have responsibility for in the managements agreement with the auditors
to prevent and detect fraud
how should the auditors amend the audit plan if they believe the probability of giving an inappropriate audit opinion
decrease the detection risk
what is the responsibility of the auditor in accordance with ISA 250
to obtain sufficient appropriate evidence regarding complinace with laws that have direct effect on the FS ONLY
what are the 2 elements of the risk of material misstatement at the assertion level
audit risk and detection risk
what is the rule on performance materiality
it must be lower than materiality for the FS as a whole
when is the inherant risk assessment performed
interim audit
when is the subsequent events review performed
final audit
what test does agreeing NCA’s back to the asset register prove
completeness
