Auditing – Assignment lecture 1

Pham Thi Thach Thao - BAFNIU17060

Nguyen Thi Anh Thu – BAFNIU17013
Le Dang Quang – BAFNIU17065
Huynh Pham Hoai Thuong – BAFNIU17058

Question: Listing all the responsibilities of managers and auditors on the engagement letter.

Answer:

I. Responsibilities of managers:
 Properly recording transactions in the accounting records
 Establishing and maintaining internal control sufficient to permit the
preparation of financial statements in conformity with generally accepted
accounting principle
 Adjusting the financial statement to correct material misstatement
 Affirming to them that the effect of any incorrect misstatements
aggregated
 Identifying and ensuring that the company complies with the laws and
regulation applicable to its activities
 Maintaining effective internal control over financial reporting and for its
assetment of the effectiveness of internal control over financial reporting
 Making available to them, on a timely basis, all of the company's original
accounting records and relative information and company personnel to
whom we make direct inquiries
II. Responsibilities of auditor:
1. The expression of opinions on the financial statements:
 Performing the audit in accordance with standards established by the
Public Accounting Company Oversight Board (US).
o Plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
 Examining evidence supporting the amounts and disclosures in the
financial statements.
 Assessing accounting principles used and significant estimates made by
management.
 Evaluating the overall financial statement presentation.
2. Internal control over financial reporting:
 Express an opinion on the effectiveness of the company’s internal control
over financial reporting.
 Performing the audit of internal control over financial reporting in
accordance with standards established by the Public Accounting
Company Oversight Board (US).
o Plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was
maintained in all material respects.
 Obtaining an understanding of internal control over financial reporting.
 Testing and evaluating the design and operating effectiveness of internal
control.
 Performing such other procedures as audit consider necessary in the
circumstances.