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Flashcards in Audited Financial Statements Deck (8)
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1

What is the purpose of an audit?

To provide financial statement users with an opinion on whether the financial statements are presented fairly.

2

Does the auditor's report give credibility to the financial statements?

Yes

3

What are the responsibilities of management?

Financial statements and Internal control

4

What is the auditor's responsibility?

Attest function

5

What type of assurance is needed for an auditor to express an opinion?

Reasonable assurance

6

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

7

What type of assessments require judgment by management?

Intangibles, impairment, asset life/salvage, bad debts, warranties, and lawsuits

8

What term describes audit evidence?

Appropriate