Scribd
Upload
9 views2 pages

AAS 2: Audit of Financial Statements

The document outlines the key considerations and procedures for conducting an audit. It discusses documenting work performed, planning the audit, relying on work done by others, obtaining audit evidence through compliance and substantive procedures, and management's responsibility for accounting systems and internal controls. It also covers reaching audit conclusions, reporting requirements, and the objective and scope of auditing financial statements according to the terms of engagement. The auditor must carefully document work, plan based on factors like time and staffing, and may rely on others if due care is exercised to obtain evidence of proper controls and data accuracy.

Uploaded by

Manish Halwasiya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views2 pages

AAS 2: Audit of Financial Statements

The document outlines the key considerations and procedures for conducting an audit. It discusses documenting work performed, planning the audit, relying on work done by others, obtaining audit evidence through compliance and substantive procedures, and management's responsibility for accounting systems and internal controls. It also covers reaching audit conclusions, reporting requirements, and the objective and scope of auditing financial statements according to the terms of engagement. The auditor must carefully document work, plan based on factors like time and staffing, and may rely on others if due care is exercised to obtain evidence of proper controls and data accuracy.

Uploaded by

Manish Halwasiya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1

Documentation
matters providing evidence should be carefully documented

Planning
Keep in mind factors like Audit Programme, availability of audit staff, time etc.

Work Performed By Others


MAY RELY, provided due care and skills are exercised

Audit Evidence
Obtained by means of

A)Compliance Procedures
Tests to obtain assurance of
proper Internal Controls

B) Substantive Procedures
Tests to obtain evidence as to
Completeness, Accuracy & Validity
of data produced by EDP system (C A V)

Accounting System and Internal Control


MANAGEMENT is RESPONSIBLE

Audit Conclusions & Reporting


a) Compliance of relevant regulations, legal requirements, accounting policies
b) Disclosure of material Matters
Very Imp: Form and Content of the Audit Report should be as per
LAW/REGULATION / AGREEMENT.

AAS-2
Objective and Scope of The Audit of Financial Statements
1) Objective
To express an Opinion
2) Responsibility of Financial Statements (F/S)
Audit of F/S, does not relieve the Management of its responsibility for
maintaining proper records.
Duty of the Management to devise A/c Policies, Internal Control measures.
3) Scope

As per the terms of Engagement / Relevant

You might also like