Monday, December 22, 2008


The overall objective of a financial statement audit is the expressions of an opinion on whether the client’s financial statement are presented fairly, in all material respect, in conformity with GAAP. The diagnostic process of making judgments about the accounts likely to contain material misstatement and obtaining reasonable assurance about fair presentation in the financial statements involves six distinct phrases.
1. Perform risk assessment procedures.
2. Assess the risk of material misstatement.
3. Respond to assessed risks.
4. Perform further audit procedures.
5. Evaluate audit evidence.
6. Communicate audit findings.

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