Auditing Standards 200 Basic Principle Governing an Super Summary in 1 Page

1. Objective of an Audit: To express an opinion with regard to the true and fair view of the financial position

2. Responsibilities: Management is responsible  for preparation of financial statements

3. Scope of an Audit:

a. Determined by: The terms of the engagement, the requirements of relevant legislation and the pronouncements of the Institute.

b.  Cannot be restricted: The scope of an audit in relation to matters prescribed by act.

4.  The reliability of information is assessed by: Compliance procedures & substantive procedures

5.  Primary objective ­ True & fair view.

6.  Secondary objective ­ Detection of frauds and errors.

7.  Concerned with material items only.

8.  If any constraints have been placed in the scope of auditor’s duty, the auditor should make necessary disclosure in his audit report. Thereafter he should issue an audit report containing a qualified opinion or a disclaimer opinion, which ever is appropriate.