CHAPTER 6: AUDIT REPORT(PSP_DAT5B_GROUP6)
Salam sejahtera
😄
Welcome to our bloger.
Kumpulan 6
1.Deepan Raj A/L Gunalan
(10DAT18F1120)
2. Vishali Murugaia
(10DAT18F1114)
3. Rashwini Jayaprabagaran
(10DAT18F1104)
4. Nur Najmeen Aimalin Binti Muhammad Syafiq William
(10DAT18F1106)
5.Nabihah Binti Mohd Azmi
(10DAT18F1002)
Can click the link to refer
Questions
1. Important of audit report
2.types of audit report
3.3 types of qualified report
4. 2 circumstances of qualified audit report
5. What's auditor's responsibility
Comments
1. Important of audit report
To obtained reasonable assurance that the financial statements are free from material misstatements either due to fraud or error
To prepared the financial statements in all material respects, in accordance with the requirements of the applicable financial reporting framework
To ensure the financial statements present a true and fair view of the financial
2.types of audit report
Unqualified reports
Qualified reports
3.3 types of qualified report
Qualified audit reports
Disclaimer audit reports
Adverse reports
4. 2 circumstances of qualified audit report
Limitation of audit scope that occur when the auditor is unable to obtain all of the audit evidence considered necessary for the purpose of the audit
Disagreement occur when accounting standard or accounting policy, method of application and adequacy of disclosures in the financial statements.
5. What's auditor's responsibility
Identifying and assessing the risks of material misstatements ( fraud or errors ) in financial statements.
Performing audit procedures and obtaining sufficient audit evidence.
Understanding the internal control which is relevant to the audit procedures
Concluding the management’s use of the going concern basis.
1. Important of audit report
A.Getting detailed review:
When the auditors conclude their findings, the company would have a final report and it would give the stakeholders a clear picture of how the business is working.
B.Evaluating internal controls
The auditor gains an appropriate understanding of internal control of the business as it relates to financial statement reporting. Internal control is the most important part of auditing and many organizations can find a significant amount of value from having an audit conducted.
During walkthroughs of internal controls and testing account balances, auditors gain an understanding of how the business works and can easily identify the critical points of internal controls. The auditor can opine on the strength and weaknesses of internal controls alongside financial reporting.
The auditor can help the staff of the business to spot efficiencies and improve inefficiencies in the flow of the business.
2.types of audit report
A.Unqualified Audit Report
B.Qualified Audit Report
C.Adverse Audit Report
D.Disclaimer Audit Report
3.3 types of qualified report
A.Qualified qualified Report
B.Adverse qualified Report
C.Disclaimer qualified Report
4. 2 circumstances of qualified audit report
A.Limitation of audit scope that occur when the auditor is unable to obtain all of the audit evidence considered necessary for the purpose of the audit
B.Disagreement occur when accounting standard or accounting policy, method of application and adequacy of disclosures in the financial statements.
5. What's auditor's responsibility
The auditor's responsibility is to express an opinion on financial statements, wether the financial statements are free from material misstatements.
According to ISA 700, the auditor's responsibilities are as follows:
1. Identifying and assessing the risks of material misstatements (fraud or errors) in financial statements.
2. Performing audit procedures and obtaining sufficient audit evidence.
3. Understanding the internal control which is relevant to the audit procedures.
4. Evaluating the appropriateness of accounting policies used.
5. Concluding the management's use of the going concern basis.