Part l ( Chapters 6-12) THE AUDIT PROCESS Part lI presents the audit process in a manner that will enable you to apply the concepts developed in these chapters to any audit area. Arens, Loebbecke; Auditing, 8/E @2000 Prentice Hall. In
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 6 Part II THE AUDIT PROCESS (Chapters 6-12) Part II presents the audit process in a manner that will enable you to apply the concepts developed in these chapters to any audit area
Other objectives are secondary AUDIT RESPONSIBILITIES AND OBJECTIVES Audit Objective Primary objective of the audit is to express an opinion on the financial statements Arens, Loebbecke; Auditing, 8/E @2000 Prentice Hall. In
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. AUDIT RESPONSIBILITIES AND OBJECTIVES Audit Objective Primary objective of the audit is to express an opinion on the financial statements Other objectives are secondary
FIGURE 6-1 Steps to Develop Audit Objectives Understand objectives and responsibilities for the audit Divide financial statements into cycles Know management assertions a bout accounts Know specific audit cuves for Know general audit classes of objectives for transactions and classes of accounts transactions and accounts @2000 Prentice Hall. In
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 6-1 Steps to Develop Audit Objectives Understand objectives and responsibilities for the audit Divide financial statements into cycles Know management assertions about accounts Know general audit objectives for classes of transactions and accounts Know specific audit objectives for classes of transactions and accounts 1 2 3 4 5
Management Vs. Auditor Responsibilities Management Auditor Financial statement.Issue opinion on fairness of .nternal controls FS’s Arens, Loebbecke; Auditing, 8/E @2000 Prentice Hall. In
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Management vs. Auditor Responsibilities Management •Financial statement •Internal controls Auditor •Issue opinion on fairness of F/S’s
Issue Opinion on Financial Statement Other obiectives are secondary Provides reasonable assurance financial statement are free from material misstatement Audit performed with professional skepticism Arens, Loebbecke; Auditing, 8/E @2000 Prentice Hall. In
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Issue Opinion on Financial Statement Other objectives are secondary Provides reasonable assurance financial statement are free from material misstatement Audit performed with professional skepticism