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Auditing Chapter-1 Key

This document defines key terms related to auditing and assurance principles: 1. It outlines various audit types including financial statement audits, compliance audits, and operational audits. 2. It explains the roles of the auditor's report, engagement letter, auditors opinion, and management letter in communicating the results of an audit. 3. It identifies important concepts like suitable criteria, objectivity, the audit client, and the level of assurance provided in an audit report.

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Lorie Roncal
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18 views

Auditing Chapter-1 Key

This document defines key terms related to auditing and assurance principles: 1. It outlines various audit types including financial statement audits, compliance audits, and operational audits. 2. It explains the roles of the auditor's report, engagement letter, auditors opinion, and management letter in communicating the results of an audit. 3. It identifies important concepts like suitable criteria, objectivity, the audit client, and the level of assurance provided in an audit report.

Uploaded by

Lorie Roncal
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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AUDITING AND ASSURANCE PRINCIPLES

FILLING THE BLANKS:

1. financial statement audit The objective of this audit is to enable the expression
of an opinion

2. auditors report The reliability on the financial statements by users of


financial information is increased because of this

3. suitable criteria These are needed to determine if an assertion is valid

4. objectivity A fundamental principle where an auditor should not


allow bias, conflict of interest or undue influence of
others to override professional judgments

5. audit client This refers to an entity where a firm conducts an audit


engagement

6. engagement letter This is a document where the auditor and an audit client
agrees to perform the work

7. auditors opinion This is the outcome of a financial statement audit

8. statement of management respo


This is a document where the audit client is responsible

9. public Generally, a financial audit benefits this user of financial


information

10. assertion The subject matter of financial audit

11. board of director If an audit client is a corporation, the auditor's report


may be addressed to the

12. operational An audit that involves obtaining evidence about the


efficiency and effectiveness of an entity's operating
procedures

13. Philippine standard on auditing In a financial audit, the audit process should be in accordance
with the

14. compliance A type of audit where laws and regulations are its criteria

15. management letter The auditor communicates the results of his work through this

16. operational An audit type performed by a CPA on salary basis

17, external An audit type performed by a CPA on a contractual basis

18. company management Internal auditors communicates the results of his audit to

19. public practice A sector where CPAs are accredited to perform financial audit
or assurance services
20. moderate assurance The level of assurance provided by an auditor on an audit report
accordance

through this

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