Can auditor obtain audit evidence without applying audit procedures?
Primarily but not necessarily auditor gathers audit evidence by applying audit procedures on entity's accounting system or through other sources of information. Auditor gathers evidence that is not only sufficient in quantity but also of...
What is the difference between Audit evidence and Audit procedure?
Auditor's responsibility is to express opinion on the assertions expressed by the management in the financial statements. However, to be reasonably sure that his opinion is appropriate, auditor is required to obtain sufficient appropriate...
What is meant by threats to Fundamental ethical principles in auditing?
To bound auditors around the world to achieve objectives of engagement effectively and also providing users of financial statements with reasonable assurance and making them responsible for other aspects of the profession auditors have...
What is Intimidation threat in auditing?
As the word intimidation means to frighten physically or mentally ultimately to gain undue advantage. As auditors' job is act honestly to report on assertions made in the financial statements, auditors may face intimidation...
What is Expectation gap in auditing?
Auditing expectation gap or simply expectation gap is the term used to signify the difference in expectations of users of financial statements and auditor's expectation concerning audited financial statements. Although its about expectations but...
Why auditor may be unable to obtain sufficient appropriate audit evidence?
Auditor is required to obtain sufficient appropriate audit evidence as it helps auditor reduce audit risk to appropriate level which leads to positive expression of auditor's opinion in auditor's report. Although auditor puts every...
When Auditor expresses a Qualified opinion?
A qualified opinion is one of the three types of modified opinion that auditor expresses in circumstances where unmodified opinion is not appropriate in auditor's judgment. Qualified opinion is also known as "except for"...
What is Audit around the computer?
Audit around the computer means that processing done by the computer system needs not to be audited as auditor expects that sufficient appropriate audit evidence can be obtained by reconciling inputs with outputs. In...
What is meant by CAATs?
CAATs short for Computer Assisted Auditing Techniques simply means that assistance of computers is taken by the auditor while carrying out audit engagement. Some students misinterpret the term as if computers will carry out...
What is the difference between Audit engagement and Assurance engagement?
In few words, all audit engagements are assurance engagements but not all assurance engagements are audit engagements. Audit engagement is one type of assurance engagement that provides reasonable assurance. Assurance engagements can be reasonable...