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INTRODUCTION TO ASSURANCE - Coggle Diagram

- - - - They will provide True + Fair, in accordance with the a financial reporting framework
      - So why do we need an external audit?
        
        there are shareholders who own the company and the director who control the day-to-day basis of the company. The director prepares the financial statements to give assurance to the shareholders. but not only the shareholders, but the stakeholders (which include the shareholders, employees, government, lenders like banks, suppliers, and customers) needed the financial statements.
      - There are limitations of audit:
        
        financial statement include estimates, the audit doesn't test all transactions, and there's an expectation gap (what people expects from the audit like test all transaction which is not, detect all fraud which is unlikely to detect all fraud they maybe can detect material fraud but not all fraud, auditor prepare the financial statement which is not because the director is the one who prepares them)
  - - - Not as much depth / detail audit, it's voluntary, will provide some assurance but obviously not full audit so it's less cost and time