Write down are Overview of Financial Statement Audit
A financial statement audit is the assessment of an entity’s financial statements and accompanying disclosures by a sovereign auditor. The consequence of this assessment is a statement by the auditor, attesting to the fairness of management of the financial statements and related disclosures.
A financial statement audit made in accordance with Generally Accepted Auditing Standards (GAAS) is subject to a member of inherent limitations.
Overview of financial statement Audit: There are many overviews of financial statement Audit. They are given below –
- The financial statements are done on the basis of company’s policy. If the financial statement is made on the basis of the generally accepted accounting principle.
- If proper books of account are maintained for the purpose of an audit.
- If it has been done the educate books of account.
- If it has done proper profit and loss account.
- If it has done to take proper statement for safeguarding the assets.
- If it has done to show proper assets and liabilities.
- If it has done the internal control of the company to check books of accounts.
- The auditor should cheek the liquidity position of the company.
- The auditor should examine the liability position of the company.
- The auditor should check the window dressing of the accounts.
- The auditor should examine the total cost position of the company.
- The auditor should examine the risky position of the company.