ch.6 auditing

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ch.6 auditing by Mind Map: ch.6 auditing

1. l.o1: objective of audit f/s

1.1. provide opinion that the f/s is fairly stated

1.2. steps for audit: 1- understand obj. and respons. for the audit. 2- divide f/s into circles/ cycles. 3- mgmt assertions 4- general - specific audit. obj.

2. res. of

2.1. mgmt:

2.1.1. adopting suitable acc policies and principles

2.1.2. internal control

2.1.3. fair presentation in the f/s

2.1.4. why mgmt respo. because mgmt operates the bus, daily acts. and the auditor knowledge is limited to the acquired

2.2. auditors resp. according to AICPA

2.2.1. f/s fairly presented. reasonable assurance not absolute, express his opinion why reasonable depends on sample

2.2.2. report his opinion in f/s and the icofr "internal control over financial reporting"

2.2.3. discover material misstatement

2.2.4. differentiate bet. error and fraud