When an auditor conducts a financial audit, the main objective is to determine if the financial statements are accurate and presented in accordance with GAAP. The auditor will test each of the basic auditing assertions. As the auditor goes through each step of the audit process, the auditor will compile sufficient evidence and data in order to make a judgment as to the reliability of the financial statements. The focus in a financial audit remains on the financial statements and their accuracy. Throughout the audit, the auditor maintains a healthy level of skepticism and remains unbiased.
In a ...
The solution discusses the key difference between conducting a financial audit and a fraud audit, and the related level of responsibility of the auditing firm.