- 20 Marks
AA – Nov 2019 – L2 – Q3 – Introduction to Auditing
Discuss the parties involved in the audit assurance process, conditions for accepting an assurance engagement, and recognizing reliable evidence.
Question
A financial analyst in his contribution at a seminar stated that audited financial statements show the records of stewardship of a company’s activities and the financial position of a company at the end of a period.
The financial report has input from key stakeholders who must perform their duties well and in an objective manner. In view of this, the report should give confidence to the users of the financial statements and support good corporate governance.
The financial report is used for decision making and is prepared based on management estimates, judgement, assumptions, and reliable evidence.
As a chartered accountant, you have been invited to make a contribution at the seminar in support of the statement of the analyst:
You are required to discuss:
- Parties to an audit assurance process, stating their duties and rights. (4½ Marks)
- When a professional should accept an assurance engagement. (8 Marks)
- How to recognize a reliable evidence in an audit and assurance engagement. (7½ Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Assurance, Parties to Audit, Reliability of Evidence
- Level: Level 2
- Topic: Audit evidence, Introduction to Auditing
- Series: NOV 2019