GUIDE 1

Page 1 of 2
(A100 V12cn)
WHAT IS A FINANCIAL STATEMENT AUDIT?
Before you are introduced to the Deloitte audit approach, it is important to understand what an audit is,
and the principles and objectives of an audit. This understanding will help you to comprehend the
Deloitte audit approach, so that you can perform the tasks assigned to you during the audit more
effectively and efficiently.

Requirements
1

Read the questions included in the table below and identify the true/false answers during the
discussion.

After the discussion, you will be given some time to complete the activity in pairs.
Statement

1. An audit is an assurance engagement where we

intend to provide a reasonable, but not absolute, level
of assurance.
2. The purpose of the audit is to ensure that the financial
statements are 100% correct.
3. A financial statement audit is an expression of an
opinion on the financial statements of an entity.
4. In order to audit effectively, the integrity of the
entitys staff does not have to be assessed; it is the
numbers that are important.
5. We can accept whatever the entitys staff tells us, if
we think they are honest.
6. To effectively audit an entity, the auditor does not
require knowledge of its business environment; its
the numbers that count.
7. An auditor should be independent of the entitys
management staff.
8. The audit Engagement Partner should be satisfied
that the audit engagement team collectively has the
appropriate capabilities, competence, and time to
perform the audit engagement.

2012 Deloitte Touche Tohmatsu. All rights reserved.

True

False

GUIDE 1
Page 2 of 2
(A100 V12cn)
9. An audit report is addressed to a specific party and
not to the public at large.
10. When there is an inappropriate accounting policy in
use, an audit opinion considers whether the
difference is material to the financial statements.

2012 Deloitte Touche Tohmatsu. All rights reserved.