Page 5 - FINAL CFA SLIDES DECEMBER 2018 DAY 7
P. 5
Session Unit 6:
21. Financial Statement Analysis: An Introduction, p.1
LOS 21.d: Describe the objective of audits of financial statements, the types of audit
reports, and the importance of effective internal controls, p.3
An audit is an independent review of an entity’s financial statements.
The standard auditor’s opinion contains three parts and states that:
1. FS is management responsibility, the auditor has performed an independent review.
2. Provide reasonable assurance that FS contain no material errors.
3. The auditor satisfied FS were prepared in accordance with GAAPs.
Internal controls are the processes by which the company ensures that it presents
accurate financial statements.
