Audit Responsibilitiesand Objectives.ppt

Audit Responsibilitiesand Objectives Chapter 6 Key Topics in Chapter 6 Understand the responsibility of : Management, for the financial statements and internal controls The independent auditor: SAS 1 – auditor’s responsibility in performing the audit For discovering illegal acts Understand the four phases of a financial statement audit Key Topics in Chapter 6 Be familiar with the different transaction cycles Know the management assertions Know the general transaction-related and general balance-related audit objectives Objective of Conducting an Audit of Financial Statements Management’s Responsibilities Auditor’s Responsibilities Auditor’s Responsibilities for Discovering Illegal Acts Auditor’s Responsibilities for Discovering Illegal Acts Financial Statements Cycles Relationships Among Transaction Cycles Management Assertions Transaction-Related Audit Objectives and Management Assertions Transaction-Related Audit Objectives and Management Assertions Transaction-Related Audit Objectives and Management Assertions Assertions and Balance-Related Audit Objectives General Balance-RelatedAudit Objectives General Balance-RelatedAudit Objectives General Balance-RelatedAudit Objectives Balance and Transactions Affecting Balances Example How Audit Objectives Are Met Four Phases of a Financial Statement Audit Announcements First midterm next Wednesday, Feb. 1. A topic guide that will summarize the main items that could be represented on the midterm will be available on the website within the next 2 days. Next class: guest professors from PwC will present material from Chapter 6. The objective of the ordinary audit of financial statements is the expression of an opinion of the fairness with which they present fairly, in all respects, financial position, result of operations, and its cash flows in conformity with GAAP. Management is responsible for the financial statements and for internal control. The Sarbanes–Oxley Act increases management’s responsibility for the fina