General Objectives and Principles that Govern a Financial Statements Audit

Author:Univ. Prof., PhD. Ion MIHĂILESCU, PhD. Student Niculina MARCU

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Keywords:statutory audit, audit objectives, financial statements cycles, professional skepticism, reasonable insurance

Abstract:
Following the accomplishment of the audit engagement, the auditor must formulate a motivated opinion regarding at least tow aspects: the validity and the right appliance of the internal procedures approved by the management of the entities concerning the accomplishment of the internal control and the internal audit and of the true, clear, complete image of the transactions and of the other events which are concretized in assets, debts, and the own capitals of the entity at the reporting datum, with the fulfillment of the recognizing criteria.\r\nWhile the audit engagement is carried, the auditor must take action in compliance with the provisions of the Ethic Code, to carry the activity in compliance with the International Standards of the Audit and to plan and to carry the audit engagement with an attitude of professional skepticism, admitting the idea financial statements can be significantly distorted in some circumstances.\r\nThe objective of the financial audit has multiple valences, but the most important is represented by the notion of finality as a result of the evaluation, of the organizing and functioning of the system management and of the manner in which this one accomplishes the engagement’s objectives, respectively making the system more efficient.\r\n

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