Concept Introduction:
Auditing is an independent examination of financial statements. The set of financial statements includes balance sheet, income statement, statement of owner’s equity, and statement of cash flows. The audit is performed by an independent auditor.
To indicate:Types of auditors and their roles.
Explanation of Solution
There are two types of auditors; internal and external. Internal auditor performs the audit as per the requirement of the management and provides opinion as well suggestions on the internal control and financialstatement of the entity. The external auditor (independent auditor) performs the statutory audit of the financial statement and provides opinion on the true and fair view of the financial statements.
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Chapter 2 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
- Select the necessary words from the list of possibilities to complete the following statements.arrow_forwardwhat is audit report?arrow_forwardWhich among the following form of reporting is best suited for comparison? a. Narrative form b. Tabular form c. Graphical form d. Descriptive formarrow_forward
- List three reasons management may ask for an operational audit to be performed, and explain how the audit program would be impacted by each of them.arrow_forwardInput validation includes field interrogation that examines the data in individual fields. List four validation tests and indicate what is checked in each. Please give specific examples for each one of them.arrow_forwardExplain the content of audit report.arrow_forward
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning