Special Topics in Accounting Studies
Please give “robust” responses!
- It is important for an auditor to have knowledge of the client’s own business and the industry that they’re in. Please discuss and give an example.
- One of the General Standards of auditing is that the “..auditor must maintain independence…”. Discuss the elements of “independence”
- The auditor’s opinion is based on “reasonable assurance”. Explain this and how this differs from “absolute assurance”
- A company under audit will hope that the auditors will find their financial statements free of “material misstatement”. Explain what that means.
- Auditors assess (test) a company’s internal controls. Discuss what that is and how it affects the planning of the audit procedure.
- Auditors perform “substantive testing”. What is substantive testing and which of the ten (10) GAAS standards does it fall under?
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