Week 2 - Assurance, Key Elements Flashcards
1
Q
Who is involved in the 3 party relationship?
A
Auditor, client, mangement
2
Q
What is the subject matter?
A
Financial statements
3
Q
What are the 3 parts of the criteria?
A
- it is practical
- is it ethical
- is it legal
4
Q
What are the key elements of assurance?
A
- 3 party relationship
- subject matter
- criteria
- sufficient appropriate evidence
- written report
5
Q
What kind of evidence is needed?
A
Sufficient, appropriate evidence
(Enough, relevant)
6
Q
What is the mnemonic to remember this?
A
Criteria
Report (written)
Evidence (sufficient appropriate)
Subject matter
Three party relationship
7
Q
What are the 4 steps of the audit process?
A
Pre-audit activities
Planning
Fieldwork
Completion
