Paragraph Styles 4) 5) 6) 7) 8) 9) 10) Hot 11. 12. 13. 14 14. The purpose of an audit is to provide an opinion on the financial statements, with an underlying premise that management is responsible both for preparing financial statements in accordance with the applicable financial reporting framework and for providing the auditors with access to necessary information An attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatements and a critical assessment of audit evidence is referred to as professional skepticism. Financial statements are prepared following generally accepted auditing standards. Auditors have the responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement Fraudulent financial reporting involves the theft of an entity's assets and is often perpetrated by employees in relatively small and immaterial amounts. Fraudulent financial reporting may be accomplished by manipulation, falsification (including forgery), or alteration of accounting records or supporting documentation from which the financial statements are prepared The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the auditors. Public companies are ordinarily audited by a CPA firm. For audit purposes, professional skepticism includes a questioning mind and a critical assessment of audit evidence and should be maintained throughout the planning and performance of an audit.. When an auditing standard uses the word "should," this indicates that the auditor must in all cases follow it if the requirement is relevant to the company being audited. International auditing standards are developed by the International Auditing and Assurance Standards Board