Publication: Fundamentals of Financial Statements Audit
Date
2011-05
ISSN
Published
2011-05
Author(s)
World Bank
Abstract
The purpose of an audit is to enhance
the degree of confidence of intended users in the financial
statements. The objective of an audit of financial
statements is to enable an auditor to express an opinion as
to whether the financial statements are prepared, in all
material respects, in accordance with International
Financial Reporting Standards or another identified
financial reporting framework. The auditor's opinion is
expressed in by using the phrase 'give a true and fair
view' or 'present fairly, in all material
respects'. The auditor and the client's management
have separate and distinct responsibilities. The auditor is
responsible for forming and expressing an opinion on the
financial statements. The client's management, on the
other hand, bears responsibility for preparing and
presenting the financial statements. Management's
responsibilities are not relieved by the fact that the
statements are audited. An auditor must comply with general
principles of an audit. These require an auditor to: 1)
comply with the 'Code of Ethics for Professional
Accountants' issued by the IFAC (or a national Code of
Ethics, where appropriate); 2) conduct an audit in
accordance with International Standards on Auditing (ISAs)
(where applicable); and 3) plan and perform the audit with
an attitude of professional skepticism, recognizing that
circumstances may exist that cause the financial statements
to be materially misstated.
Citation
“World Bank. 2011. Fundamentals of Financial Statements Audit. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/87c56672-33a8-5fab-b003-b6a5d71efc3a License: CC BY 3.0 IGO.”