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Who does the auditor report to?

. 07 The auditors report must be addressed to the shareholders and the board of directors, or equivalents for companies not organized as corporations. The auditors report may include additional addressees.

What is the auditors responsibility in respect of misstatements?

The auditors objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes the auditors opinion.

What do you mean by auditor?

Auditors are finance professionals who perform audits they review financial statements, internal processes, and transaction records to assess accuracy and completeness. Internal auditors typically work for the company they audit and guide management on improving recording and reporting processes.

What assertion is tracing?

Vouching is typically used to address the existence assertion while tracing is used to address the completion assertion.

What happens if an auditor finds a material misstatement?

The auditor has concluded that the potential impact of undetected misstatements (if any) on the financial statements might be both substantial and pervasive if they were to occur. In such a circumstance, the auditor will conclude that a qualified audit opinion is insufficient to convey the circumstances seriousness.

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When the auditor identifies a misstatement in the financial statements the auditor should consider?

When audit test results identify misstatements in the financial statements, the auditor should consider whether such misstatements may be indicative of fraud. That determination affects the auditors evaluation of materiality and the related responses necessary as a result of that evaluation.

What is the auditors responsibility for detecting misstatements?

The auditor has a responsibility to detect material misstatements of the financial state ments that are caused by fraud. The types of fraud that may cause misstate ments in financial statements are fraud ulent financial reporting and misappro priation of assets.

What do you evaluate when you initially identify an audit misstatement?

The auditor is required to determine whether uncorrected misstatements are material, individually or in aggregate. At this point the auditor should also reassess materiality to confirm whether it remains appropriate in the context of the entitys actual financial results.

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