【正确答案】True and Fair presentation Financial statements are produced by management which give a true and fair view of the entity’s results. The auditor in reviewing these financial statements gives an opinion on the truth and fairness of them. Although there is no definition in the International Standards on Auditing of true and fair it is generally considered to have the following meaning: True – Information is factual and conforms with reality in that there are no factual errors. In addition it is assumed that to be true it must comply with accounting standards and any relevant legislation. Lastly true includes data being correctly transferred from accounting records to the financial statements. Fair – Information is clear, impartial and unbiased, and also reflects plainly the commercial substance of the transactions of the entity.

【正确答案】International Standards on Auditing International Standards on Auditing (ISAs) are issued by the International Auditing and Assurance Standards Board (IAASB) and provide guidance on the performance of an audit. ISAs only apply to the audit of historical financial information. They are written in the context of an audit of financial statements by an independent auditor. The ISAs contain basic principles and essential procedures together with related guidance in the form of explanatory material and appendices. It is necessary to consider and understand the entire text of an ISA to understand and apply the basic principles and essential procedures. The basic principles and essential procedures of an ISA are to be applied in all cases. If in exceptional cases the auditor deems it necessary to depart from an ISA to achieve the overall aim of the audit, then this departure must be justified.