AUDITING
OBJECTIVE AND GENERAL PRINCIPLES GOVERNING
AN AUDIT OF FINANCIAL STATEMENTS (BSA-200)
Lecture # 4
The objective of an audit of financial statements is to enable the auditor to express an opinion
whether the financial statements are prepared, in all material respects, in accordance with an
applicable financial reporting framework.
Responsibility for the Financial Statements
The auditor is responsible for forming and expressing an opinion on the financial statements, the
responsibility for the preparation and presentation of the financial statements in accordance with the
applicable financial reporting framework is that of the management of the entity, with oversight
from those charged with governance. The audit of the financial statements does not relieve
management or those charged with governance of their responsibilities.
Management is responsible for identifying the financial reporting framework to be used in the
preparation and presentation of the financial statements. Management is also responsible for
preparing and presenting the financial statements in accordance with that applicable financial
reporting framework. This responsibility includes:
