Distinguish management’s responsibility for the financial statements from the auditor’s responsibility for verifying those statements.

AUDIT RESPONSIBILITIES AND OBJECTIVES

After studying this chapter, you should be able to

6-1 Explain the objective of conducting an audit of
financial statements and an audit of internal controls.

6-2 Distinguish management’s responsibility for the financial statements from the auditor’s responsibility for verifying those statements.

6-3 Explain the auditor’s responsibility for discovering material misstatements due to fraud or error.

6-4 Describe the need to maintain professional skepticism
when conducting an audit.

6-5 Describe the key elements of an effective professional
judgment process.

6-6 Identify the benefits of a cycle approach to segmenting the audit.

6-7 Describe why the auditor obtains assurance by auditing transactions and ending balances, including presentation and disclosure.

6-8 Distinguish among the management assertions about
financial information.

6-9 Link transaction-related audit objectives to management assertions for classes of transactions.

6-10 Link balance-related audit objectives to management assertions.

6-11 Explain the relationship between audit objectives
and the accumulation of audit evidence.