This course teaches you how to conduct financial statement auditing. In this first lecture it provides an overview of public accounting and auditing.
This lecture discusses the different players in the audit industry. It discusses about the public companies that are the clients and issuers of financial statements, public accountants who conduct the audit, standard setters, regulators, and the users of financial statements such as the investors and lenders.
This lecture reviews the principles of Generally Accepted Auditing STandards (GAAS) and Audit Quality. It discusses the general standards, examination standards, and the reporting standards.
This lecture discusses auditing ethics and some of the common rules of professional conduct for public accountants. Understanding that ethics is a set of moral principles or values is not very complex. What is complex is to understand why people behave differently in similar situations. Public accounting is a profession. This means that the public […]
This lecture looks at the standard audit report for an unqualified opinion. An unqualified audit report basically says that the financial statements are fair in all material aspects which is in your opinion as the auditor. Before you can say that, you need to pass through five important gates: You’re engaged to perform an audit. […]
In this lecture, we will look at how the auditors express their dissatisfaction with the financial information prepared by management. there are two broad situations that we need to consider, which result in four different types of opinions, two for each situation. The two situations are as follows: First, when we have financial statements that […]
This lecture provides a high level overview of the audit process and provides you a feel of what an audit process is and how it is conducted. There are four broad steps: Acceptance Continuance, Planning, Execution (Risk Response), and Reporting. There are two key things here. The management prepares the financial statements, and the auditors […]
This video discusses the various assertions made by the management in preparing the financial statements. When the management puts its financial statements in front of the auditors, it is asserting that these are the numbers and that they don’t have a second set of books hidden away in the back of the closet. Management assertions […]
In this lecture we will differentiate between the various types of audit evidence. Audit evidence is the stuff that auditors gather to support their opinion on the fairness of presentation of the financial information prepared by management. The audit evidence must be documents and must support risks at the assertion level.
In this lecture you will learn about what determines the extent of audit work performed. You will learn about how audits are tailored for different circumstances. The lecture deals with audit risk. The audit risk is the risk that the auditor gets it wrong. First, we need to recognize that an audit provides reasonable assurance, […]