Week 2 - Why is Assurance Necessary? Flashcards
(3 cards)
1
Q
Why is assurance over the financial statements needed?
A
Give assurance to shareholders that the financial statements presented to them by the directors of the company in which they’ve invested in are broadly true and fair
2
Q
What does the assurance ensure the reports are like?
A
Not 100% but broadly true and fair - reflects performance of company over the year and checks for inconsistencies
3
Q
What is the point of auditing for the auditor?
A
To make a profit - can’t do for free
