Auditors collect sufficient appropriate audit evidence to provide their opinion on a subject matter. Based on this opinion, users can make various decisions. Therefore, auditors must consider the trust users put in their work. If auditors fail to perform their tasks effectively, they may face legal repercussions. These fall under …

Audit procedures allow auditors to check various assertions. These assertions may relate to account balances or a class of transactions and events. Similarly, it entails collecting audit evidence that auditors can use to form a conclusion regarding the subject matter. One of the most common audit procedures auditors utilize within …

The term audit expenses may refer to two areas. The first includes the examination of expenditures within a company performed by auditors during the auditing process. On the other hand, it may also represent the costs associated with the auditing process. The former area relates to auditing, while the latter …

Most people associate the word auditing with external audits. This process involves examining an entity’s financial statements. Based on that assessment, auditors reach a professional conclusion about the subject matter. These auditors are not the employees of the entity under consideration. However, audits may also occur internally, known as internal …

Auditing requires auditors to collect audit evidence which they can use to reach an audit conclusion about the subject matter. Usually, this process entails checking an entity’s records and ensuring they match the figures reported in the subject matter. However, auditors cannot examine every piece of evidence due to constraints. …

Audit engagements include various techniques and methods to obtain audit evidence. On top of that, they also help auditors analyze and test the acquired information. However, these techniques may differ based on the type of data obtained or the objective of the test. One of these techniques includes analytical procedures. …

What is Audit Risk? The primary objective of an audit engagement is for the auditors to provide an audit report. This report must state the auditors’ opinion of whether the financial statements are free from material misstatements. However, they always face the risk of providing an incorrect audit opinion. This …

Impairment refers to the loss of value of a fixed asset. In accounting, impairment loss quantifies this loss. Several factors may contribute to a fixed asset losing its value. These factors may be external or internal. Usually, companies conduct an impairment test to determine if a fixed asset has suffered …

Auditors provide an audit opinion in their independent auditor’s report. In most cases, it involves an unqualified opinion, also known as a clean opinion. However, if auditors determine the subject matter has some issues, they may change their opinion. One of these opinions includes the adverse audit opinion. It is …

Audit engagements involve auditors providing their opinion on a subject matter. This audit opinion comes in the form of an audit report. Essentially, it includes the conclusion auditors reach after collecting audit evidence during their work. This conclusion states whether the subject matter is free from material misstatement. However, auditors …