Auditing typically refers to financial statement audits or an objective examination and evaluation of a company's financial statements - usually performed by an external third party. Audits can be performed by internal parties and a government entity, such as the Internal Revenue Service (IRS).

1. What is meant by the term 'audit evidence'? Explain with an example. 

2. What are the four types of audit opinions? Describe each in detail. 

3. What is the purpose of an audit report? Outline its key components. 

4. What is a material weakness in the context of an audit? Provide an example.

 5. What are the factors that an auditor should consider when assessing the reliability of evidence gathered?

 6. What is meant by the term 'critical audit matters' (CAMs)? Why do auditors report CAMs?

 7. What are the key steps in the audit planning process? Describe each in detail. 

8. How does the auditor obtain an understanding of an entity's internal control environment during the planning stage? 

9. What is the purpose of substantive testing? Describe the various methods of substantive testing used by auditors. 

10. Explain the difference between the terms 'materiality' and 'audit risk'. How are they related?

 11. What procedures do auditors perform to gain assurance of an entity's inventory valuation?

 12. What are the characteristics of a good internal control system? 

13. What is the role of internal audit in the audit process? How does it differ from external audit? 

14. How do auditors assess the going concern status of an entity? What factors do they consider