Financial-statement audit
A financial-statement audit is an independent assurance engagement in which the auditor obtains reasonable assurance and expresses an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework. Management remains responsible for the statements and internal control.
Worked example
An independent auditor tests a company’s year-end accounts and reports an opinion to the intended users.
Common mistake
An audit does not certify the future viability of the entity or guarantee that every fraud has been detected.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |