F8考点总结.doc

Basic concept The nature of audit An audit is defined as the independent examination of and expression of opinion on the financial statements of an organization. Audit, is the process of a group of independent professional person, check or review FS according to engagement letter and general accepted auditing stds, then present their opinion. The objective of FS audit is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework, and FS comply with relevant statutes or law. The statute requires 2 audit objectives: to express opinion on the truth and fairness of FS. To express opinion on whether the FS comply with relevant statutes or laws. *Responsibility of auditors is to plan and perform the audit to provide reasonable assurance that FS are free of misstatement and give a true and fair view. The auditor’s opinion enhances the credibility of FS by providing a high, but not absolute, level of assurance that they give a tue and fair view/are presented fairly. Responsibility of mgt is Keep proper accounting records, Prepare FS, which comply with legislation and accounting stds. Safeguard the company’s assets and to prevent fraud and errors Establish internal control system and keep their running in efficient way. Deliver audited FS to any appropriate court or gov. agency. Auditor’s rights and duties *Rights: access to books and records to receive information and explanations from officers of the company to receive notice and attend company meetings to receive notice of any intention to propose his removal, and to make written representation in such circumstances. To requisition an EGM on his resignation and to attend and be heard at that meeting. Duties: to report the members on whether the FS give a true and fair view and have been properly prepared. To form an opinion as to whether RAPID Returns (branches) received Accounting record consists