Objectives and Risks in Auditing Financial Investments
Author:
Prof. univ. Tatiana DĂNESCU, PhD; Lecturer Ioan Ovidiu SPĂTĂCEAN, PhD Student
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DOI:
Keywords:
investment firms, capital allocation, financial investments, audit objectives, audit techniques and procedures, risk valuation, management representations, internal control tests
Abstract:
In the process of planning financial audit engagements for investment companies, financial investments held in companies within the portfolios represent a significant audit domain. \r\nProvided that financial position, financial performances and changes of financial position reported through financial statements issued by investment companies are significantly correlated with policies related to acquisitions and sales of financial investments, the audit process is based upon specific tests and procedures performed for internal controls and accounting system that allow the auditor to gain a reasonable level of assurance that financial investments are fairly recognized, valued and presented. From this perspective, identifying and assessing objectives and relevant risks in the process of auditing financial investments, as well as selecting and applying techniques and procedures that respond to an adequate level of accuracy and assure the accomplishment of these objectives, contribute in a decisive manner for reporting successful audit missions. \r\n\r\n