Week 7 - Re-call: Preconditions for an Audit

Question 1

What is the first precondition for an audit?

Answer 1

An acceptable financial reporting framework is to be applied to the preparation of the financial statements

Question 2

What is the second precondition for an audit?

Answer 2

That management understands and acknowledges its responsibilities for preparing the financial statements and providing the auditor with access to all relevant information and explanations