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- This topic has 2 replies, 3 voices, and was last updated 11 years ago by Rajiv.
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- May 6, 2013 at 12:37 pm #124706
I found various different replies to these on the internet. Can someone help? Thanks
May 9, 2013 at 1:26 am #124940What do you mean? What makes you think this could be in the exam?
May 9, 2013 at 4:14 pm #124977This IS a key element of the exam. The paper is founded on these principles and how they apply in the real world.
Since auditing is type of assurance engagement the principles are roughly the same.
Here are the cornerstone concepts of external auditing:
– agency problem:
shareholders own a company but directors run it. Shareholders therefore appoint an independent auditor to give them confidence in directors’ stewardship by providing a report/opinion.– 3 party relationship between practitioner(auditor), management and intended users of accounts(shareholders)
-review of subject matter(accounts) against criteria(IFRS etc)
-gathering sufficient appropriate evidence.
– reporting / giving opinion.
-compliance with professional and ethical standards.
-the audit process is particularly suited to providing an independent check on management and
therefore may improve their systems through feedback from engagement.-auditing is imperative for listed and public interest companies and now a requirement of major stakeholders
of a company(banks, customers, suppliers etc.) - AuthorPosts
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