Flashcards in Audited Financial Statements Deck (8)
What is the purpose of an audit?
To provide financial statement users with an opinion on whether the financial statements are presented fairly.
Does the auditor's report give credibility to the financial statements?
What are the responsibilities of management?
Financial statements and Internal control
What is the auditor's responsibility?
What type of assurance is needed for an auditor to express an opinion?
What are the inherent limitations of an audit?
The nature of financial reporting, audit procedures, and timeliness of financial reporting and the balance between cost and benefit
What type of assessments require judgment by management?
Intangibles, impairment, asset life/salvage, bad debts, warranties, and lawsuits