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Chapter 2: Audit Legal Requirements - Coggle Diagram
Chapter 2: Audit Legal Requirements
Define
To required review of the accucary of a company's or government's financial statements and records.
Objective and Principle
Principle:
Comply with the MIA By-Laws (On Professional Ethics, Conduct and Practice)
To not allowing bias differences of interest, or too much input from others to cancel out commercial or professional judgements.
To be straightforward and honest in all professional and business relationship.
To maintain professional knowledge and skill.
Responsibility for Detecting Fraud
ISA 240: To establish basic principles and essential procedures and provide guidance on the auditor's responsibility to consider fraud in an audit of financial statement.
Look at the honesty and equity of the companies' financial statements as well as fraud and mistake prevention and detectio
Standard Distinguishes Fraud:
(ii) Misstatements Resulting from Fraudulent Financial Reporting
(i) Misstatements Resulting from Misappropriation of Assets
Charged with governance and the management of the entity for the prevention and detection of fraud.
The inherent limitation of an audit int he context of fraud and sets out the responsibilities of the auditor for detecting material misstatements due to fraud.
Government Bodies
Practice Review Committee
To encourage compliance with generally accepted accounting principles and auditing standards .
Ethics Standards Board
Auditing abd Assurance Standards Boards
Audit Oversight Board
To improve audit quality