Lesson 1 Flashcards
What is an assurance assignment?
Reviewing a business’s financial procedures to help improve the information managers/owners receive
What is Limited Assurance?
Low levels of assurance, conclusion is expressed negatively
What is reasonable assurance?
A high and thorough check, opinion is expressed positively
Who can carry out an audit?
A member of ICAEW or ACCA
Who cannot carry out an audit?
Anyone that manages the company or has a connection to the company
What are the expectations gap beliefs?
Auditors test all transactions
Auditors detect all fraud
Auditors prepare financial statements
Clean audit opinion guarantees company going concern
SOFIPO shows the true value of a company
Who appoints auditors?
Shareholders and directors
How can auditors be removed?
Through a majority vote
What is Corporate Governance?
Rules and practices in which a board of directors ensures accountability in a company’s relationship with all stakeholders
