Answer Happy

The purpose and objective of an auditor is to form opinions onwhether the operations of an entity are effective andefficientand if financial statements are reliable and do not contain anymaterial misstatements. Once an audit is accepted by anauditor they will need to gather evidence that is sufficient andreliable which will support any opinions that are made by theauditor. The audit process is a logical and systematic processwhich is planned and implemented in accordance to theaudit standards.2.1 Prior to the audit conducting an audit there are stages whichneed to be followed. What are thesestages?2.2 There are two requirements which should be fulfilled prior tothe acceptance of an engagementwhich is to establish if the pre-conditions of the audit exist andensuring that there is a mutualunderstanding which is present between management, the auditor andindividuals who are incharge of governance of the audit engagement. What are the twopre-conditions of an audit?2.3 The audit plan consists of a greater amount of details ascompared to the audit strategy. Identify 2items which should be documented in the audit plan.