These are needed to judge the validity of the assertions
Established criteria
Representations made by an entity about economic actions and events
Assertions
Established criteria in an operational audit
Objectives set by the board
Study of a specific unit of an organization for the purpose of measuring its performance
Operational/performance/management audit
An audit benefits the __________.
public
Requires the auditor to make impartial assessment of all the relevant circumstances in forming a conclusion
Objectivity
There should be no long-term ________ between the auditor and the client management.
conflict
Conducted to determine whether the financial statements of the entity are fairly presented in accordance with the applicable financial reporting framework
Financial statements audit
Government employees whose main concern is to determine whether persons or entities comply with government laws and regulations
Government auditors
Independent CPAs who offer their professional services to different clients on a contractual basis
External/independent auditors
What is the general assertion made by the auditee in an operational audit?
That the organization's activities are conducted effectively and efficiently
_______ internal control system reduces the possibility of material misstatements of the financial statements.
Effective
Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making
Accounting
What was held in the past will continue to hold in the future in the _______ of known conditions to the contrary.
absence
Involves a review of an organization's procedures to determine whether the organization has adhered to specific procedures, rules, or regulations
Compliance audit
Established criteria in a compliance audit
Laws, regulations, contracts
Entity's own employees who investigate and appraise the effectiveness and efficiency of operations and internal controls
Internal auditors
This is essential for ensuring the credibility of the auditor's report in an engagement
Independence
Auditor makes a critical assessment, with a questioning mind, of the validity of audit evidence and is alert to audit evidence that contradicts or brings into questions the reliability of the documents or management representations
Professional skepticism
Established criteria in a financial statements audit
Financial reporting framework
What is the general assertion made by the auditee in a compliance audit?
That the organization has complied with laws, regulations, or contracts
Identify 1 of the general characteristics of the different types of audit
Systematic examination and evaluation of evidence; communication of the written results
What is the general assertion made by the auditee in a financial statements audit?
That the financial statements are fairly presented
______ application of the applicable financial reporting framework such as the PFRS results in fair presentation of financial statements.
Consistent
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