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Hello tutor,
I am so confused 2 questions:
– Objective and general principles of external audit engagements.
– Nature and development of audit and other assurance engagement?
Could you help me?
Thank you.I don’t think these are worth worrying about too much. I know they are in the learning guide but only levels 2 and 1.
The main objective of external audit is the given an opinion on the FS. General principles are what’s talked about in audit report – reasonable assurance, test basis, material misstatement.
For you second point, just remember the 5 parts of an assurance engagement (see first pages in the F8 notes)
Hi,
I am looking for the general principles of an external audit and saw your reply above. I also found the below
https://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Audit%20Engagements.aspx
stating that.. General principles are the below
The auditor should follow certain general principles in the conduct of an external audit.
•Compliance with applicable ethical principles, i.e. the IFAC Code of Ethics for Professional Accountants and the ethical pronouncements of the auditor’s professional body, e.g. the ACCA’s Rules of Professional Conduct.
•Compliance with applicable auditing standards, i.e. the International Auditing and Assurance Standards Board’s (IAASB’s) International Standards on Auditing (ISAs).
•Planning and performing the audit with an attitude of professional scepticism that recognises that the financial statements being audited may be materially misstated.
•Relevant national legal frameworks.I am confused now. Can someone explain
Thanks
AnaliseOne reply deals with the general principles of external audit: giving an opinion, reasonable assurance, test basis, material misstatement.
The other information deals more with the conduct of an external audit assignment.
so in short what you saying here is the nature and development is the 5 elements,that is
a three party relationship
subject matter
suitable creteria
sufficient appropriate evidence
a written report in the form appropriate to a reasonable assurance engagement or limited assurance engagement
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