Write down are Overview of Financial Statement Audit - QS Study
QS Study

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.