AN OVERVIEW ON THE AUDITING AND ASSURANCE PRINCIPLES
Accountants final output – Financial Statements
External auditor yung report niya ay nakaanchor sa ginagawa ng accountant which is the Financial
Statements
Paano mo ba malalaman na ang financial statements ay fairly presented? – no bias, objective
We should not only rely what the accountants say as users of financial reports. Very concern ang mga
primary users because they have to make an economic decision.
FS is fairly presented if it complies with all the requirements and provisions of the accounting standards
unless otherwise, immaterial (will not affect the economic decision making) standards referring to PFRS
Independent / External Auditor – not affiliated with the company. Independent body that will verify if FS
complies to the accounting standards.
Auditors final output - Audit Opinion / Audit Report – after all the procedures done by the independent
auditor, magbibigay na siya ng audit opinion at mahalagang makita ng mga users ng FS na may
nakaattatch certifying that it is fairly presented in all material respect.
Ang primary purpose ng isang auditor ay para magbigay ng opinion if the financial statements are fairly
presented.
Audit is a systematic process as well. Para kang nagiimbestiga para magkaroon ka ng conclusion. Bago
makapagbigay ng audit opinion, dadaan a rin sa systematic process dahil may tinatawag na PSA –
Philippine Standards on Auditing.
Meron ka dapat Sufficient Appropriate Evidence.
Sufficient -dapat tama ang number or quantity ng documents mo.
Evidences – conract, invoices, supporting documents
Appropriate- dapat tama ang kinukuha mong mga dokumento ; it pertains to the quality of the evidence