assurance team

Assurance team – meaning

Assurance team are all professionals participating in the assurance engagement and all others within a firm who can directly influence the outcome of the assurance engagement, including:

  • Those who recommend the compensation of, or who provide direct supervisory, management or other oversight of the assurance engagement partner in connection with the performance of the assurance engagement.
  • Those who provide consultation
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What is the difference between audit and compliance?

Audit is an independent examination of business financial statements so as to issue opinion on whether the financial statement are prepared in accordance with acceptable financial reporting framework and show true performance and position of the business. Audit is conducted according to the requirements of countries laws and regulations and international standard on auditing. The auditor when conducting audit aim … Read the rest

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Four causes of misstatements in the financial statements,#3 will surprise you.

Misstatements are difference between what accounting standards and framework want financial statements to be and what financial statements actually are. ISA 450  define misstatement as difference between the amounts, classification, presentation, or disclosure of  reported financial statement item and the amount, classification, presentation, or disclosure that is required for for the item to be in
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5 types of threats to IFAC fundamental principles of code of ethics.

Accountant is required to comply with five fundamental principles specified by IFAC code of ethics. However, compliance with fundamental principles may potentially be threatened by broad range of Circumstances.

The following are categories of threats that may potentially affect compliance with fundamental principles.

Self interest threats.

This may occur as result of the financial or … Read the rest

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7 limitation of organization internal control.

Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Internal controls are essential features of any organization that is run efficiently. However, it is important to realize (especially for an … Read the rest

9 benefits of marginal costing

Ten (10) basic elements of audit report

Audit report is the end product of audit process in which auditor express his opinion on truth and fairness of financial statements. the audit report have uniform content and structure to enable understandability and comparability between audit report of one entity and another or between report of different period of the same entity.

The following

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Why is absolute assurance in auditing impossible?

Six (6) matters to be evaluated before expressing audit opinion.

Audit opinion is the conclusion that auditor present through audit report on whether financial statement which was audited shows true and fair view.

Before forming an opinion the auditor should conclude :

  • Whether there is misstatement or scope limitation
  • Whether effects of misstatement or scope limitation is immaterial, material or pervasive

Auditor should also evaluate the following:

  • Whether the accounting
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