AUDITING AND ASSURANCE PRINCIPLES

FILLING THE BLANKS:

1. financial statement audit The objective of this audit is to enable the expression
of an opinion

2. auditors report The reliability on the financial statements by users of

financial information is increased because of this

3. suitable criteria These are needed to determine if an assertion is valid

4. objectivity A fundamental principle where an auditor should not

allow bias, conflict of interest or undue influence of
others to override professional judgments

5. audit client This refers to an entity where a firm conducts an audit

engagement

6. engagement letter This is a document where the auditor and an audit client
agrees to perform the work

7. auditors opinion This is the outcome of a financial statement audit

8. statement of management respo

This is a document where the audit client is responsible

9. public Generally, a financial audit benefits this user of financial

information

10. assertion The subject matter of financial audit

11. board of director If an audit client is a corporation, the auditor's report

may be addressed to the

12. operational An audit that involves obtaining evidence about the

efficiency and effectiveness of an entity's operating
procedures

13. Philippine standard on auditing In a financial audit, the audit process should be in accordance
with the

14. compliance A type of audit where laws and regulations are its criteria

15. management letter The auditor communicates the results of his work through this

16. operational An audit type performed by a CPA on salary basis

17, external An audit type performed by a CPA on a contractual basis

18. company management Internal auditors communicates the results of his audit to

19. public practice A sector where CPAs are accredited to perform financial audit
or assurance services
20. moderate assurance The level of assurance provided by an auditor on an audit report
accordance

through this