Lecture 17 - ISA 700 Audit Report

Question 1

What are the key responsibilities of auditors?

Answer 1

1. Gain sufficient and appropriate evidence ISA 500
2. Maintain skepticism and professional judgment
3. Understand internal controls
4. Perform substantive testing ISA 520
5. Communicate with those discharged with governance
6. Evaluate FBU

Question 2

What are the responsibilities with those discharged with governance?

Answer 2

1. Produce financial statements
2. Choose accounting standards and policies
3. Decide on going concern
4. Implement internal controls

Question 3

What is the order of the ISA 700 report?

Answer 3

1. Independent auditors report title
2. Addressee
3. Responsibilities of management and those discharged with governance
4. Responsibilities of the independent auditor
5. Scope of audit
6. Basis of opinion / qualified opinion / disclaimer of opinion / adverse opinion
7. 2. Emphasis of matter (if required)
8. Date, address, signature