In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error (ISA 200: Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing). REQUIRED: Explain THREE (3) reasons why an audit of financial statement could only provide reasonable assurance but not absolute assurance. Explain the TWO (2) different type of fraud and give relevant example for both.
In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error (ISA 200: Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing). REQUIRED: Explain THREE (3) reasons why an audit of financial statement could only provide reasonable assurance but not absolute assurance. Explain the TWO (2) different type of fraud and give relevant example for both.
Chapter7: Professional Issues
Section7.5: Fred Stern & Company, Inc. Stern & Company, Inc.(ultramares Corporation V. Touche Et Al.)
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In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error (ISA 200: Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing).
REQUIRED:
- Explain THREE (3) reasons why an audit of financial statement could only provide reasonable assurance but not absolute assurance.
- Explain the TWO (2) different type of fraud and give relevant example for both.
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