READING REPORT in Auditing and Assurance Concepts and Application

(Subject Code & Description)

Date: November 13, 2020

Thetitle of the book/ article I have read is:

AUTHOR’S LOGIC: The author is conveying the message/idea of:

Example: “Green” branding of businesses has gone too far and no longer carries the same sort of impact it once did. Today,
so many people are concerned with the environment that many businesses try to represent themselves as being “green.” They
want to have a reputation for being environmentally conscious.
TYPES OF AUDIT:
1.Financial Statement audit A financial audit is one of the most common types of audit. Most types of financial
audits are external. During a financial audit, the auditor analyzes the fairness and accuracy of a business’s financial
statements. Auditors review transactions, procedures, and balances to conduct a financial audit. After the audit, the
third party usually releases an audit opinion about your business to lenders, creditors, and investors.
2.Operational audit Operational audits are similar to internal audits. An operational audit analyzes your company’s
goals, planning processes, procedures, and operation results. Generally, operational audits are conducted internally.
However, an operational audit can be external. The goal of an operational audit is to fully evaluate your business’s
operations and determine ways to improve them.
3.Compliance audit A compliance audit examines your business’s policies and procedures to see if they comply with
internal or external standards.

STUDENT’S LOGIC: Provides learners with an opportunity to reflect and think about how they actually solve problems and how a
particular set of problem solving strategies is appropriate for achieving their goal. What is to be accomplished/learned?
Example: In support of the Supermarket “Green” initiatives, I bring my own shopping bags for grocery shopping and say no to
plastic bags.
Legal Framework -All business activities should be run adhering to the rules and regulations stipulated in the legal
framework. This is to safeguard the interests and rights of the interested parties.

VISION: MAN OF GOD – VIR ENIM DEI. “A leading transformational leadership institution with a unique Gabrielian
Culture of Discipline, Socially Responsible, Interdependent, Functionally Productive, Godly Individuals and
reaching the marginalized to thrive in the global community.
In aligning to the Vision and Mission of the College, I can apply what I have learned from my readings by:
Example: Being more aware about eco-friendly practices you can adopt at home so that we can make a positive difference as socially
responsible graduates.
Audit Report -On the basis of the review and assessment of the audit evidences, Auditor should express his opinion
regarding financial statements of an organization − Financial statements are prepared using acceptable accounting
principles ,Financial statements comply all relevant statutory requirements, All material matters are disclosed and
proper presentation of financial statements are done subject to statutory requirements.
Prepared by: Arby May F. Enguillo Checked by: Mrs. Adalia Bringas
Student Professor/Instructor
LEARNING DIARY in Auditing and Assurance Concepts and Application
(Subject Code & Description)

Date: November 13, 2020

I learned in our prayer that

We need to thank God at all things he has given to us especially that we can
Still studying even though there is a pandemic, God is the most present help
In times of need so praise him all the time because he is really good to us.

My action today is to
When we do things think twice because being an optimistic thinker can lead us doing things
Right without regretting at all.

In our lessons for today, I have learned about:

1. I learned that Internal Auditors take a holistic view of their organization’s governance, risk, and
control systems (in other words, primarily non-financial information),
2. external auditors are either concerned with the accuracy of business accounts and the organization’s
financial condition or, in some industries, the organization’s compliance with laws and regulations.
3. government auditors are those who audit the financial position of Government agencies and private
businesses involved in activities pertaining to government regulations, taxation, foreign exchange.
4. OBJECTIVES OF FINANCIAL STATEMENT AUDIT Financial statement audits give users
confidence that the financial statements are reliable. To obtain reasonable assurance about whether
the financial statements are free from material misstatement. To express an opinion on whether the
financial statements are prepared, in all material aspects, in accordance with a financial reporting
framework and To report on the financial statements, and communicate as required by the ISAs, in
accordance with the auditor’s findings.
5. Unqualified Opinion If your company gets this opinion, that's a good thing. An unqualified opinion
indicates that the information presented in a company’s financial report is clean. As in a medical
patient’s clean bill of health, an unqualified opinion shows that the audited financial statements can
be presumed to be free from misstatements. 
6. Qualified Opinion An opinion rendered in a qualified audit report is similar to an unqualified opinion;
however, the auditing body cannot express an unqualified opinion for several reasons. One reason
could be that the company did not present its financial records in accordance with GAAP.
7. Disclaimer Opinion Auditors give a disclaimer when they are unable to express a definite opinion.
This can be due to the lack of properly maintained financial records or the absence or insufficient
support from the management. For instance, an auditor may not have had the opportunity to fulfill
tasks that they deem to be crucial to the audit, such as observing operational procedures or reviewing
particular procedures.
8. Adverse Opinion When auditors issue an adverse opinion, it indicates that there has been a gross
misstatement and, possibly, fraud, in the preparation of the company’s financial records. An adverse
opinion shows that the company’s records have not been prepared in accordance with GAAP.
Financial statements with adverse audit opinions are typically rejected by financial institutions or
investors
9. Audit Evidence -An Auditor should adhere to substantive and compliance procedure for collecting
audit evidences before conducting an audit. Through substantive procedures, an Auditor may collect
evidences regarding accuracy, completeness and validity of data; and through compliance procedure,
he may collect evidences regarding internal control system as used in the client’s organization.
10. Internal Control System -It  is the primary responsibility of a company to keep adequate internal
control system in his organization. On the basis of such internal control system, an Auditor can
determine the nature, timing and audit procedure to be applied to conduct his audit.

I will memorize the above learning points, explain them in my own words, and apply them in our activities.
VISION: MAN OF GOD – VIR ENIM DEI. “A leading transformational leadership institution with a unique
Gabrielian Culture of Discipline, Socially Responsible, Interdependent, Functionally Productive, Godly
Individuals and reaching the marginalized to thrive in the global community.
I can connect my learning today with the vision and mission of our school by:

Financial statement audits give users confidence that the financial statements are reliable. To obtain
reasonable assurance about whether the financial statements are free from material misstatement. To express
an opinion on whether the financial statements are prepared, in all material aspects, in accordance with a
financial reporting framework and To report on the financial statements, and communicate as required by the
ISAs, in accordance with the auditor’s findings.

Prepared by: Arby May F. Enguillo Checked by:Mrs. Adalia Bringas

Student Professor/ Instructor