Nama : Dennisa Faradilla
NIM : 041911333162
Resume Week 6
Audit Responsibilities and Objectives
Objective of Conducting An Audit of Financial Statements
The preface to the clarified AICPA auditing standards indicates:
The purpose of an audit is to provide financial statement users with an opinion by the auditor on
whether the financial statements are presented fairly, in all material respects, in accordance with the
applicable financial accounting framework. An auditor’s opinion enhances the degree of confidence that
intended users can place in the financial statements.
Steps to Develop Audit Objectives
Management’s Responsibilities
The responsibility for adopting sound accounting policies, maintaining adequate internal coontrol and
making fair representations in the financial statements rests with maagement rather than with the
auditor. Because they operate the business daily, a company’s management knows more about the
company’s transactions and related assets, liabilities, and equity than the auditor.
Auditor’s Responsibility
AICPA auditing standards stateà The overall objectives of the auditor, in conductiong an audit of
financial statements, are to:
a. 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 presented fairly, in all material
respects, in accordance with an applicable financial reporting framework.
b. Report on the financial statements, and communicate as required by auditing standards, in
accordance with auditor’s finding.