W.2 TA3 Auditing

What does the word "Auditing" come from?

• Latin word "Audire" meaning to listen

• Latin word "Audere" meaning to decide

• Greek word "Audit" meaning to calculate

What is the main purpose of auditing?

• To check if the person is making profits

• To examine financial statements and records

• To prepare financial statements

Who conducts an audit?

• A team of company managers

• An investor

• An independent and qualified person

What does an auditor provide after completing an audit?

• A financial statement

• An opinion on the financial statements

• A tax report

Why do investors appoint an auditor?

• To increase company profit

• To check the true and fair presentation of financial statements

• To reduce company expenses

What is examined during an audit?

• The company's products

• Employee performance

• Financial records and statements

What is the role of management in a company?

• To invest money

• To manage and operate the company

• To provide an audit report

What is one of the main concerns for investors regarding financial statements?

• Correct profit

• Employee performance

• Product quality

What can the financial results (profit or loss) be distributed as?

• Cash or stock dividends or reserves

• Employee salaries

• Business expansion

What does auditing aim to ensure about financial statements?

• They are accurate and truthful

• They are prepared by the management

• They follow legal rules