SA 100: Overall Objectives#
Purpose of Audit#
The objective of an audit is to enhance confidence in financial statements by expressing an opinion on whether financial statements are prepared, in all material respects, in accordance with applicable financial reporting framework.
Auditor's Responsibilities#
- Act as independent professional
- Plan and perform audit with professional skepticism
- Obtain reasonable assurance about whether financial statements are free from material misstatement
- Express opinion on financial statements
Types of Opinions#
| Opinion | Meaning |
|---|---|
| Unqualified | Financial statements give true and fair view |
| Qualified | Except for effects of matters, financial statements give true and fair view |
| Adverse | Financial statements do not give true and fair view |
| Disclaimer | Unable to obtain sufficient appropriate evidence |
Reasonable Assurance#
- High but not absolute level of assurance
- Audit evidence obtained to reduce audit risk to acceptably low level
- Not a guarantee of accuracy
Professional Skepticism#
- Questioning mindset
- Critical assessment of evidence
- Not be satisfied with less than sufficient appropriate evidence