f8 presentation ch 1

8/13/2019 F8 Presentation Ch 1

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F8 PresentationJune 2014

Abdus Salam Jan FCA, FPFA


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Topic List

1. Introduction to assurance

2. Rules and Regulation

3. Ethics and acceptance

4. Risk

5. Planning

6. Evidence

7. Systems and controls

8. Procedures

9. Completion and review

10. Reporting

11. Corporate governance

12. Internal audit


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Chapter 1Introduction to Assurance


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Chapter 1. what is assurance?

1. What is assurance?

2. Assurance in the context of a company

3. Types of assurance engagements

4. Audit Engagements

5. Review Engagements

6. Expectation Gap


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IINVESTORS

CCUSTOMERS SSUPPLIERS

LLENDERS

EEMPLOYEES

PPUBLIC

GGOVT.

MMANAGEMENT

Users of financial statements & their Needs


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Ownership Management

Separation of Ownership from Management


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Ownership

Management



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Audit & Assurance Services

by independent auditor become vital when MANAGEMENT

of business is separated from

OWNERSHIPto ensure more transparency in financial reporting.



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Audit & Assurance Services

by independent auditor become vital when MANAGEMENT

of business is separated from

OWNERSHIPto ensure more transparency in financial reporting.


Auditor


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Audit & Assurance enhances the

CONFIDENCEof users of financial statements and

reduces the risk.

What Audit & Assurance do?


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The objective of an audit of financial statements is to

enable the auditor to

express an opin ion whether the f inancia l

statements are prepared,

in all material respects,

in accordance with an appl icable f inancialrepo rt ing framewo rk.

An audit of financial statements is an assurance engagement.

Objective of External Audit


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Types of Assurance Services


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Use of estimation in financial information

Evidence is persuasive not conclusive

Inherent limitations of control used as audit evidence

Representation from management as only evidence.

Can not review 100% of the transactions

Limitations of an audit


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I F R Ss

Extras


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Fair Presentation & Compliance with IFRSsExtras


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Exam Practice Question AlertExtras

f8 presentation ch 1

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