Whether the amounts of the transactions in the income statements have been recorded appropriately.
Because auditors are independent from management, leading to more accurate information and trustworthy opinions.
Classes of transactions are transactions for the year recorded in the income statement accounts, also referred to as transactions in the revenue and expense accounts.
The auditor reviews financial information prepared by management to determine whether it conforms to a particular standard (e.g., IFRS/MFRS). The auditor follows auditing standards (e.g., ISA) and is independent of the company. The auditor verifies the truth and fairness of the financial information so that outsiders, such as bankers, shareholders, or regulatory bodies, have accurate information to make decisions.
Independence in fact and independence in appearance.
To keep the company’s share price from falling.
