THE NIGERIA STANDARD ON AUDITING

This Nigerian Standard on Auditing (NSA) deals with the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with NSAs. Specifically, it sets out the overall objectives of the independent auditor and explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives. It also explains the scope, authority and structure of the NSAs and includes requirements establishing the general responsibilities of the independent auditor applicable in all audits, including the obligation to comply with the NSAs. The independent auditor is referred to as “the auditor” hereafter. The NSAs contain objectives, requirements and application and other explanatory material that are designed to support the auditor in obtaining reasonable assurance. The NSAs require that the auditor exercise professional judgment and maintain professional scepticism throughout the planning and performance of the audit and among other things: • Identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entity’s internal control. • Obtain sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks. • Form an opinion on the financial statements based on conclusions drawn from the audit evidence obtained.