PROSPECTIVE FINANCIAL INFORMATION

PROSPECTIVE FINANCIAL INFORMATION Forecasts may be of interest to users more so than historical information.  Auditors may carry out a review or an assurance engagement on these forecasts. Prospective financial information is based on assumptions about events that may occur Read More …

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PROFFESIONAL CONDUCT

FUNDAMENTAL PRINCIPLES AND GUIDANCE ISA 200 sets out the general principles of an audit.  The auditor should comply with the code of ethics for professional accountants issued the International Federation of Accountants.   Accountants require ethics because people rely Read More …

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INTERNAL AUDIT AND OUTSOURCING

INTERNAL AUDIT AND OUTSOURCING All businesses, where appropriate, should consider setting up an internal audit function.  Internal audit plays a key role in good corporate governance.  There are costs associated with setting up internal audit so having your own internal Read More …

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AUDIT OF FINANCIAL STATEMENTS

INTRODUCTION  When you are auditing items appearing in the financial statements, you need to consider the following matters: Risk, Materiality, Relevant accounting standards, Audit evidence.   ASSETS   The key audit objectives are existence, completeness, valuation and rights and obligations. Read More …

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AUDIT EVALUATION AND REVIEW

REVIEW PROCEDURES  An auditor must perform and document an overall review of the financial statements before making an audit opinion.  This review, along with the conclusions drawn from other audit evidence obtained, gives the auditor a reasonable basis for his Read More …

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AUDIT EVIDENCE

AUDIT EVIDENCE INTRODUCTION   The purpose of ISA 500 is to establish standards and provide guidance on what constitutes audit evidence in an audit of financial statements, the quantity and quality of audit evidence to be obtained, and the audit Read More …

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Associates and Joint Ventures Notes

INVESTMENTS IN ASSOCIATES AND INTERESTS IN JOINT VENTURES Associates Sometimes the investment in another entity is not enough to give it control, but such is the amount of voting power acquired that the investor exercises significant influence over the investee. Read More …

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AUDIT PLANNING AND STRATEGY

AUDIT PLANNING   ISA 300: planning an audit of financial statements establishes standards and guidance on the considerations and activities applicable to planning an audit.   The auditor should: Plan the audit so that the engagement will be performed in Read More …

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