Auditing 300 Lecture 1课件.ppt

Auditing 300 (Chap 1, 2 and 3);Teaching Materials;OVERVIEW;Introduction;Overview of the Assurance Framework;In relying on the auditor’s opinion, the users need to recognise that there are limitations: An audit is not a guarantee that the financial report is free from material misstatement, because absolute assurance is not attainable. Further, an audit opinion does not assure the future viability of the entity nor the efficiency or effectiveness with which management and those charged with governance have conducted the affairs of the entity. ;In undertaking his duties, the auditor covers all aspects of the audited entity in relation to relevant financial information in order to form an opinion as to whether: For Example: The financial information complies with relevant statutory authorities and relevant regulations; The view presented by the financial information as a whole is consistent with the auditors knowledge of the business entity; and There is adequate disclosure of all material matters to give a true and fair view. ;The auditor undertakes his task of forming an opinion on a set of financial statements through an assurance engagement. This is defined by the Framework for Assurance Engagement para 8 as: ‘an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria’.;Value in the assurance services arises as a result of: Independence: users derive value from the knowledge that a member of the profession has no interest in the information other than for its usefulness. Expertise: assurers must have the competence to obtain sufficient relevant information to provide a reasonable basis for their conclusions. ;For any subject matter, three levels of assurance can be provided by auditors. They are: Reasonable assurance Limited assurance. No assurance ;The 3 types of