09-01-2004, 11:13 PM
Reading a lot of case studies and going through IFAC's statements on Audit,.. that does cover some scenarios. If you could get your hands on the auditing standards issued by AICPA (American institute of CPA), that does have a lot of examples and scenarios.
The underlying concept is to understand how and what will effect the understanding and decision making process of the reader, the going concern issue, legal ramifications and the scope of audit itself.
Ofcourse you must also have a clear understanding how one set of circumstances may have varying audit reports,. e.g the size of the company and financial side of an issue are some factors that may as well govern if an unqualified report with an emphasis of matter paragraph may suffice, or a qualified report with special reference (as part of the report to the issue) or a discalimer may be issued.
At your level, if you are not a trainee, I say you should try discussing different scenarios with you study group or seniors who have an understanding of the subject.
Hope this is of any help.
The underlying concept is to understand how and what will effect the understanding and decision making process of the reader, the going concern issue, legal ramifications and the scope of audit itself.
Ofcourse you must also have a clear understanding how one set of circumstances may have varying audit reports,. e.g the size of the company and financial side of an issue are some factors that may as well govern if an unqualified report with an emphasis of matter paragraph may suffice, or a qualified report with special reference (as part of the report to the issue) or a discalimer may be issued.
At your level, if you are not a trainee, I say you should try discussing different scenarios with you study group or seniors who have an understanding of the subject.
Hope this is of any help.
