Audit Notes

Practitioners give the Users a written conclusion Accountable party must have an accountability relationship with the Users Auditors in an engagement must be independent because they would be perceived as unbiased Definitions:Accounting 0 Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information to have a proper decision making process Assurance 0 An engagement where a practitioner is engaged to issue a written communication expressing a conclusion concerning a subject matter for which the accountable party is responsible Auditing 0 Accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria Auditing should be done by a competent, independent person.Audit of FIS (Triangle diagram based on the conformity of the FIS with IFRS, GAAS, ASPE) Auditor 0 Shareholder's 0Management Auditor gives their written opinion to the Shareholders Management gives a stewardship relationship (to manage and look after the company for the S/H) with the shareholders Audit Objectives To gain reasonable assurance of FIS To ensure FIS are free from material misstatements For the auditor to express an opinion about the FIS being prepared with respects to the tlnancial reporting trameworks (IFRS Chapter 2 – The Public Accounting Profession Quality Control for Firms (Table 2. 2. 9) Leadership for Quality Control Should be present for all audits Quality control procedures should be implemented and communicated to everyone Firms should ensure all personnel are qualified Establish a formal code of conduct Ethical Principles are Required Principles include: Integrity Objectivity Professional Confidence