Acct 3708 Lecture Pdf - 1701 Words

University of New South Wales School of Accounting Auditing and Assurance Services 2013 LECTURE 1 Introduction to the Audit Function Assurance Framework Australian Corporate Audits Auditing Standards Lecture Overview †¢ Announcements †¢ Overview course requirements †¢ Introduction to the course – Assurance – Auditing – Legal requirements – Auditing standards Announcements †¢ 1. Tutorial Allocation – Once classes are full no more will be admitted – No new classes will be scheduled – Staff-assisted changes †¢ Will be allowed for exceptional circumstances only; and only where the class is not already at maximum size †¢ 2. Student email address †¢ used for course announcements including offer of supplementary final†¦show more content†¦Ã¢â‚¬ ¢ (Framework for Assurance Engagements para 21) Absolute Assurance †¢ Absolute assurance can never be provided because of: – The nature of accounting: †¢ Valuation issues, †¢ Accounting policy choice and judgments, †¢ Contingent items, – Time and cost of evidence collection and evaluation. Reasonable Assurance †¢ Reasonable assurance is a high but not absolute level of assurance †¢ The conclusion is expressed in a positive form – The financial statements are true and fair. †¢ An audit engagement provides a reasonable level of assurance. †¢ The opinion is expressed in an audit report. Limited Assurance †¢ Limited assurance is a lower level of assurance than reasonable assurance. – The actual level of assurance depends upon the nature of the procedures that are carried out. †¢ The conclusion is expressed in a negative form – Nothing has come to our attention to suggest that the financial statements are not true and fair. †¢ A review engagement provides a limited level of assurance. Auditing †¢ The American Accounting Association (AAA) has defined auditing as: – A systematic process of objectively