Download - F8 Presentation Ch 1
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F8 PresentationJune 2014
Abdus Salam Jan FCA, FPFA
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Topic List
1. Introduction to assurance
2. Rules and Regulation
3. Ethics and acceptance
4. Risk
5. Planning
6. Evidence
7. Systems and controls
8. Procedures
9. Completion and review
10. Reporting
11. Corporate governance
12. Internal audit
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Chapter 1Introduction to Assurance
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Chapter 1. what is assurance?
1. What is assurance?
2. Assurance in the context of a company
3. Types of assurance engagements
4. Audit Engagements
5. Review Engagements
6. Expectation Gap
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IINVESTORS
CCUSTOMERS SSUPPLIERS
LLENDERS
EEMPLOYEES
PPUBLIC
GGOVT.
MMANAGEMENT
Users of financial statements & their Needs
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Ownership Management
Separation of Ownership from Management
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Ownership
Management
Separation of Ownership from Management
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Ownership Management
Audit & Assurance Services
by independent auditor become vital when MANAGEMENT
of business is separated from
OWNERSHIPto ensure more transparency in financial reporting.
Separation of Ownership from Management
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Ownership Management
Audit & Assurance Services
by independent auditor become vital when MANAGEMENT
of business is separated from
OWNERSHIPto ensure more transparency in financial reporting.
Separation of Ownership from Management
Auditor
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Audit & Assurance enhances the
CONFIDENCEof users of financial statements and
reduces the risk.
What Audit & Assurance do?
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The objective of an audit of financial statements is to
enable the auditor to
express an opin ion whether the f inancia l
statements are prepared,
in all material respects,
in accordance with an appl icable f inancialrepo rt ing framewo rk.
An audit of financial statements is an assurance engagement.
Objective of External Audit
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Types of Assurance Services
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Use of estimation in financial information
Evidence is persuasive not conclusive
Inherent limitations of control used as audit evidence
Representation from management as only evidence.
Can not review 100% of the transactions
Limitations of an audit
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I F R Ss
Extras
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Fair Presentation & Compliance with IFRSsExtras
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Exam Practice Question AlertExtras