In: Accounting
2. As per the ISA 200, state the key requirements for the auditor to obtain reasonable assurance and to express an opinion on financial statements.
An auditors responsibility is to provide reasonable assurance on financial statements.
Key Requirements for the auditor to express an opinion on financial statements are -
1. Ethical Requirement - Auditor is bound by ethical codes. He
should comply relavant ethical requirements,
2. Professional skepticism - Auditor need to maintain an attitude
that circumstances may exist which causes the financial statement
be misstated.
3. Sufficient appropriate audit evidence - To obtain
reasonable assurance auditor should obtain sufficient
appropriate audit evidence to reduce audit risk and draw a
conclusion on which he express his opinion on financial
statements.
4. Professional Judgement - The auditor should exercise his
professional judgement based on his relavant trainning, knowledge
and experince.
5. Conduct of an audit in accourdance with ISA - Auditor should
comply all ISAs relavant to the audit. To achive the overall
objective. He should use the objective stated in related ISA.