An auditor’s opinion is a statement that auditors provide after auditing a company’s financial statements. Usually, this process involves examining these statements and collecting audit evidence. Based on this process, auditors come to a conclusion to form an opinion. Usually, this conclusion entails ensuring the financial statements are free from …

The auditing process requires auditors to collect evidence that supports their work. During this process, auditors must ensure the evidence is sufficient and appropriate. This evidence then forms the basis for the auditor’s report. Apart from the client’s supporting documents, auditors must also possess proof of their plan and the …

A professional accountant is responsible for satisfying the needs of their clients or employers. However, their responsibility also extends toward the public. The accountancy profession requires accountants to act in the public interest. The same concept applies to auditors. In the auditing process, the professional ethics of an auditor is …

Stakeholders use financial statements to make decisions about their relationship with a company or organization. However, they also need certainty related to the figures reported in those statements. Hence, they refer to the audit report, which includes an independent auditor’s audit opinion. This opinion may be of four types. However, …

When auditors audit a client’s financial statement, they must reach some conclusions. Usually, these conclusions relate to whether the financial statements meet pre-identified suitable criteria. Once they do so, auditors must express their opinion. This opinion may either be unmodified or modified. Among modified audit opinions, auditors may also provide …

The primary objective of most audit assignments is for the auditor to express an opinion regarding the subject matter. Usually, they report it in a document known as the audit report. The term audit opinion defines a statement provided by auditors about a given subject matter. This opinion may differ …

Corporate governance is a system of practices, rules, and processes by which companies are directed and controlled. It provides a framework for companies to achieve their objectives. Corporate governance defines several rules and practices that help companies run effectively and efficiently. Among these, corporate governance requires companies to establish several …

An audit approach defines the strategy that auditors use to conduct an audit. Usually, auditors use a specific audit approach for every audit assignment based on several factors. Among these approaches, some may apply to clients or engagements in different industries. One of these includes the substantive audit approach, also …

With external audits, auditors examine a client’s financial statements. These financial statements primarily include the balance sheet and the income statements. Usually, auditors employ an audit approach such as substantive procedures or a system-based approach for these audits. Sometimes, however, auditors may focus on the balance sheet only. In that …

Auditors must consider the audit risks associated with audits. It is crucial that they reduce these risks to an acceptable or reasonable level. However, most traditional audit approaches overlook audit risks. While these approaches still cover most risks, they are not suitable for risky audits. For these audits, auditors need …