Auditor’s Role and Responsibilities
- Compare the primary auditor objectives in auditing historical financial statements to auditing internal controls over financial reporting. Identify at least two (2) objectives that are the most significant in reducing the risk of reporting errors or misstatements in financial statements. Provide a rationale for your response.
- Create a scenario where it would be acceptable for an external auditor to accept an audit engagement without having knowledge of a client’s business environment. Ascertain the key legal ramifications and risk mitigation strategies associated with an auditor performing the audit. Support your position.
The objectives of an auditor in auditing historical statements is based on the rich materials facts that can be found in such materials. The auditor should determine whether the overall audit strategy and Audit plan need to be revised. A company’s history is quite important in gaining its future performance, reducing the risk of reporting errors or misstatements.
It is necessary to always try to reduce the risk of reporting errors so that the reported data may be intelligible. Companies rely on such data to…