In conducting an audit of financial statements, the overall objectives of the auditor are:
To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.
To report on the financial statements, and communicate as required by Government Accounting and Auditing Standards in accordance with the auditor’s findings.
To achieve the overall objectives of the auditor, the auditor uses the objectives stated in the individual agreed upon sections in planning and performing the audit considering the interrelationships within Government Accounting and Auditing Standards to:
Determine whether any audit procedures in addition to those required by the individual agreed upon sections are necessary in pursuance of the objectives stated in each agreed upon section.
Evaluate whether sufficient appropriate audit evidence has been obtained.
PRINCIPLES GOVERNING AN AUDIT
Purpose of an Audit:
Provide financial statement users with an auditor’s opinion to enhance confidence.
Responsibilities:
Competence and capabilities
Relevant ethical requirements
Professional skepticism and professional judgment
Performance:
Obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement.
Obtain reasonable assurance by;
planning work
determining materiality
assessing risks of material misstatement
obtaining sufficient appropriate audit evidence
Inherent limitations of an audit preclude absolute assurance.
Reporting:
Express an opinion in the form of a written report.