l1 : phases of an audit

Question 1

what does assurance aim to achieve?

Answer 1

inspire confidence & reudce risk. increases confidence in the intended users of the subject being assured

Question 2

why is relevant and reliable financial information needed?

Answer 2

to make informed decisions –> attracts investors –> raise capital –> promotes growth

Question 3

give 3 benefits of assurance.

Answer 3

• independent opinion from external source, enhanced credibility
• management bias is reduced
• adds value as relevance of info is improved by expertise and knowledge

Question 4

how must auditors behave?

Answer 4

• true & fair view
• compliant
• going concern basis
• ethically

Question 5

what are the 4 phases of an audit?

Answer 5

1. engagement acceptance report (client research)
2. planning & risk assessment (addressing transition risks)
3. evidence gathering (actual audit review)
4. review & reporting (writing up auditors report)