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ROLE ON COMPLIANCE WITH

GLOBAL AUDITING STANDARDS

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FINANCIAL STATEMENTS

ROLE OF MANAGEMENTTo prepare and present fair financial statements in

accordance with the Philippine Financial Reporting

Standards

ROLE OF AUDITOR

To express an opinion on the financial statements

To conduct the audit in accordance with PSA

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ELEMENTS OF THEORETICAL FRAMEWORK

1.All data are verifiable2. The auditor should always maintain independence

3. There should be no long-term conflict between the

management and auditor

4. Effective internal control reduces the risk of

material misstatements in the financial statements

5. Compliance with the applicable accounting

standards results in fair presentation of thefinancial statements

6.An audit benefits the public

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Conditions that create a demand for an audit

Conflict of interestRemoteness

Complexity

Consequences

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FRAUD and ERROR

MANAGEMENT ROLEThe primary responsibility for the prevention

and detection of fraud rests with both those

charged with governance of the entity and

management

EXTERNAL AUDITORS ROLE

Auditor should obtain reasonable assurancethat the financial statements are free from

material misstatements

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NON-COMPLIANCE WITH LAWS AND

REGULATIONS

Managements role

Management is responsible for ensuring thatthe entitys operations are in compliance with

laws and regulations

Auditor s Role

The auditor shall obtain sufficient appropriate

evidence regarding compliance with theprovisions of laws and regulations that wouldhave direct and material effect on the financialstatements

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ACCOUNTING ESTIMATES

Managements role

Management is responsible for makingaccounting estimates that are reasonable in the

circumstances

Auditor s Role

The auditor shall obtain sufficient appropriate

evidence that accounting estimates have beenproperly accounted for and disclosed; and thatthese are reasonable in the circumstances

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RELATED PARTIES

Managements role

Management is responsible for theidentification and disclosure of related party

relationships and related party transactions

Auditor s Role

The auditor shall obtain sufficient appropriate

evidence that material related partytransactions are adequately disclosed in thefinancial statements

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GOING CONCERN

Managements role

Management should make a specific

assessment of the entitys ability to continue as

a going concern.Auditor s Role

The auditors responsibility is to consider the

appropriateness of management use of thegoing concern assumption in the preparation of

the financial statements.

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AUDITORS REPORTING RESPONSIBILITIES

EMPHASIS OF MATTER PARAGRAPHOTHER MATTER PARAGRAPH

REPORTING ON GROUP FINANCIAL

STATEMENTS

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THANK YOU!!!