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