Professional Documents
Culture Documents
Implements
internal controls Obtains
evidence
Conducts
transactions Tests management
assertions against
Accumulates transactions criteria (GAAP)
into account balances
Determines overall
fairness of financial
Prepares Financial
statements
Statements
Issues audit report
Issues financial to accompany
statements to users financial statements
Key Concepts in Conducting an
Audit
Reasonable assurance
Risk of auditor An audit provides means there is some
expressing a clean reasonable assurance risk that a material
audit opinion when the that the financial misstatement could be
financial statements statements do not present in the financial
are materially contain material statements and not be
misstated. misstatements. detected by a
competent auditor.