Question

What are especif audit objectves? explain their relashionship to the general audit objectives

Answer 1

Specific audit objectives are the application of the general audit objectives to a given class of transactions, account balance, or presentation and disclosure.

There must be at least one specific audit objective for each general audit objective and in many cases there should be more.

Specific audit objectives for a class of transactions, account balance, or presentation and disclosure should be designed such that, once they have been satisfied, the related general audit objective should also have been satisfied for that class of transactions, account, or presentation and disclosure.

For the specific balance-related audit objective, all recorded fixed assets exist at the balance sheet date, the management assertion and the general balance-related audit objective are both "existence

Management assertions and general balance-related audit objectives are consistent for all asset accounts for every audit.

One or more specific balance-related audit objectives are developed for each general balance-related audit objective in an audit area such as accounts receivable.

The four phases of the audit are: 1.Plan and design an audit approach. 2.Perform tests of controls and substantive tests of transactions. 3.Perform analytical procedures and tests of details of balances. 4.Complete the audit and issue an audit report

The auditor uses these four phases to meet the overall objective of the audit, which is to express an opinion on the fairness with which the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows in conformity with GAAP. By accumulating sufficient appropriate evidence for each audit objective, the overall objective is met. The accumulation of evidence is accomplished by performing the four phases of the audit.