Out Of This World A Financial Statement Audit Is Designed To
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A financial statement audit is designed to. Assume that your client is a manufacturing company that has the following assets on itsbalance sheet Machinery. The objective of a financial statement audit is to obtain reasonable assurance that the financial statements are free of material misstatement. Typically those that own a company the shareholders are not those that manage it.
An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. Obtain reasonable assurance about whether the financial statements are free. This information is used by a wide range of stakeholders eg investors in making economic decisions.
Perform exhaustive tests of accounting controls and evaluate the companys control system effectiveness. 2 An audit is designed to provide reasonable of detecting material errors but there is no similar responsibility concerning fraud. The Securities and Exchange Commission requires that all entities that are publicly held must file annual reports with it that are audited.
Purpose of a financial statement audit Companies produce financial statements that provide information about their financial position and performance. View Thirteenth Four Questionsdocx from ACCO 3180 at New York University. When auditing financial statements of a private company the minimum work an auditor must perform in connection with a companys internal control is best described by which of the following statements.
3 The factors considered in assessing control risk indicated an increased risk of intentional misstatements but only a low risk of unintentional misstatements. A financial statement audit is designed to a. Topsearchco updates its results daily to help you find what you are looking for.
4 The auditor did not consider factors influencing audit risk for account balances that have effects pervasive. A financial statement audit is designed to Provide assurance on internal control and to identify significant deficiencies and material weaknesses. Ad Find financial statement auditing on topsearchco.