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What is the objective of a
financial statement audit? - ANSWER Provide financial statement users with an
opinion by the auditor on whether the financial statements are presented fairly
in accordance with an applicable financial reporting framework
Who are intended users of
assurance services? - ANSWER Decision makers ie
Investors
Creditors
Regulators
What does
"independent" mean in the context of assurance services? - ANSWER The
person performing the service is not involved with the creation of the
information & is objective in the evaluation of the information.
What is an example of an
"applicable financial reporting framework"? - ANSWER GAAP
IFRS
federal income tax basis of
accounting
What are the most common
functions of the internal auditors? - ANSWER Evaluating and improving risk
management
Internal control procedures
Elements of the governance
process
What are the three elements
of an operational audit? - ANSWER Economy...
Efficiency...
Effectiveness...
...Of an organizations
activities
Who are the main users of
company financial statements - ANSWER Current & potential investors
Suppliers
Customers
Lenders
Employees
Governments
General public
Why might financial
statement users demand an audit? - ANSWER Remoteness of the company (don't have
direct access to company records), complexity of financial statements,
competing incentives among management and users, and reliability of information
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