Page 8 - eBook Audit Of Financial Statement Components

Audit On Financial

Statements

INTRODUCTION

An Audit is a process whereby the financial
statements of business entities are subjected to a

scrutiny in a such detail as will enable the auditors

to form an opinion as to their truth and fairness.

The purpose of an audit is therefore, to express an
opinion on the financial statements, which

primarily comprise the balance sheet, income

statement, cash flow statement, movement in

equity and notes to financial statements as to
whether the financial statements are prepared in

all material respects, in accordance with the

identified financial reporting framework.

Thus, the term audit usually refers to a financial
SPECIAL POINTS OF
statement audit. A financial audit is an objective INTEREST
1. Auditing procedures on
examination and evaluation of the financial
revenues
statements which are the formal records of 2. Auditing procedures on
expenses
financial activities and position of an organization
3. Auditing procedures on
to make sure that the financial records are a fair current assets
4. Auditing procedures on
and accurate representation of the transactions non-current assets
5. Auditing procedures on
they claim to represent.
current liabilities
6. Auditing procedures on

non-current liabilities
7. Prepare the auditing
procedures on equities

1