Auditing chapter 6 quizlet

Reply to the following question: The auditors are concerned about transactions that have been recorded in the journals (and subsequently in the ledgers) that are not valid—that is, a transaction is recorded, but it did not actually occur (e

, a fraudulent overstatement of sales)

The objective of an audit of the financial statements is an expression of an opinion on the fairness of the financial statements in all material respects

What are the steps to develop audit objectives? -Understand objectives and responsibilities for the audit

A description of the nature, timing, and extent of the audit procedures to be performed

An estimate of the time required to perform each step in the audit

The purpose of this document is to avoid misunderstandings between the auditors and the client