Samenvatting

Responsibilities
 Management
o Financial statements and internal control
 Auditor
o Provide reasonable assurance

Requirements of an audit
 Comply with ethical requirements
 Plan and perform with professional skepticism
 Exercise professional judgment
 Obtain sufficient appropriate evidence
 Obtain reasonable assurance on the fairness of the financial statements
 Form opinion on going concern, internal control system and occurrence of fraud

Materiality
 If, individually or in aggregate, they could reasonable be expected to influence the
economic decisions of users taken on basis of the financial statement.
o Size
o Nature

Assertions
 Occurrence (T/P)
o Have occurred and pertain to the entity
 Completeness (T/B/P)
o Everything that should have been recorded is recorded
 Accuracy (T/P)
o Recorded appropriately
 Cut-off (T)
o Recorded in correct accounting period
 Classification (T)
o Recorded in proper accounts
 Existence (B)
o Balances exist
 Rights and obligations (B)
o Balances are controlled by the entity
 Valuation and allocation (B)
o Balances have appropriate amounts and (re)valuations are appropriate recorded
 Understandability (P)
o Appropriately presented and described, clearly expressed

Client acceptance
1. Evaluation client’s background
2. Determine whether auditor meets ethical requirements
3. Determine other professionals needed
4. Communicate with predecessor auditor
5. Acceptance by client

, Theories
 Policeman theory
o Focus on accuracy and on prevention/detection of fraud
 Lending credibility theory
o Enhance stakeholders’ faith
 Theory of inspired confidence
o Demand: Participation of outside stakeholders
o Supply: Level of audit assurance should meet reasonable public expectations
 Agency theory
o Principal: External users (shareholders)
o Agent: Company (management, BoD)
o Monitor: Auditor

Code of Ethics Principles
 Integrity
o Straightfoward and honest
 Objectivity
o Not allow bias, conflict of interest or influence override professional judgment
 Professional competence and due care
o Maintain knowledge/skill at required level
o Act diligently/in accordance with standards
 Confidentiality
o Not disclose or use information for personal advantages without authority unless
duty to disclose
 Professional behavior
o Comply with law/regulation avoid to discredit profession

Code of Ethics Threats
 Self-interest
o When auditor benefits from financial interest in or with client
 Self-review
o Auditor needs to re-evaluate previous engagement for conclusions present
engagement
o Auditor previous was an employee of client
 Advocacy
o Auditor promotes client’s position or opinion
 Familiarity
o Auditor becomes too sympathetic to client’s interest due to close relationship
 Intimidation
o Auditor is deterred from acting according to principles cause of (perceived)
threats