The Audit Process Essay

569 words - 2 pages

Definition:An independent and objective assurance designed to improve an organisation by bringing a systematic and disciplined approach to evaluate and improve management and control.Objectives:Independent Review and Appraisal.Provide reassurance to management that agreed working practises are carried out efficiently.Review value for money processes, systems within company policy.Identify fraud in order to deter crime.Ascertain extent of compliance with procedures,policies, regulations and legislation.Recommend improvements in control, performance and productivity.The auditor begins by establishing and understanding of the current system functions. This can be achieved by procedure manuals and examples of documentation. Auditing is done through a series of steps which improve the individuals ability to achieve his/her levels of awareness.To document and evaluate the current system accurately to see if it meets the needs of the company and to establish a check list of questions; For example as follows:-.Can goods be purchased without authority?Can liabilities be incurred if goods have not been received?Are purchase requisitions tied to their associated orders?Principles:Throughout this period of auditing the following principles need to be applied in order to maintain an effective and concise audit.Accountability:auditors act in the interest of the company on behalf of the management / directors.Integrity: to act with integrity and to fulfill their responsibilities with honesty, fairness and truthfulness.Objectivity: auditors express opinions independently and are there to purely ensure that company practises are actively maintained.Association: auditors will only allow their reports to be included with other documents if they do not contain conflicting information which could mislead the final analysis.It should be noted that over-familiarity can arise where an auditor is...

Find Another Essay On The Audit Process

Effect of CIS processing on the entity's internal control structure

3476 words - 14 pages rely heavily on IT systems to process financial information, there are new risks specific to IT environments that must be considered. Key risks include the following:Reliance on the functioning capabilities of hardware and softwareVisibility of audit trailReduced human involvementSystematic versus random errorsUnauthorised accessLoss of dataReduced segregation of dutiesLack of traditional authorisationNeed for IT experience1.3 Control groupings

The Purpose of an Audit Report

1315 words - 5 pages In general financial statements represent a formal record of an entity’s performance over a certain period of time which contains useful information to shareholders to assist them in making decisions (IFRS, 2014). In recent years, a wide range of users including shareholders and investors are interested in financial statements such as competitors, lenders and so on. Hence the audit report is prepared to provide an independent examination and the

What are generally thought to be the principal threats to auditor independence?

942 words - 4 pages fees, the other important income to the auditor is 'fees for other works' (Glynn, Perrin and Murphy, 1998, p122). Since most auditing companies are privately owned, the key target is to make profit. Actually the auditing process is quite costly, if the commercial companies live only on the auditing service which is obviously not enough to cover its operation. 'So except providing audit services modern accountancy practices frequently provide a range

The importance of a comprehensive security policy for modern businesses.

2140 words - 9 pages it comprises two parts: process audit and technical audits. The process audit checks for adequacy and relevance of policies, security process disciplines, and compliance of security processes, whereas the technical audit checks for technical security and license compliance of organizations' infrastructure. Those two audits strictly follow the global security standards, such as ISO 17799.The overall objective of the audit is to ensure the

Auditing the IT Security Function: An Effective Framework

3483 words - 14 pages recognition of this, ways of measuring and monitoring the effectiveness of security controls and systems have been developed into internationally recognised standards, providing a valuable tool for Auditing the IT Security Function. Convincing management that the audit process is necessary to maintain good security is perhaps one of the main hurdles preventing good auditing practices to be adopted. There are, however, convincing arguments to help

Generally Accepted Auditing Standards Paper

997 words - 4 pages be present within the financial statements where there any deficiencies within the audit report. The auditor must also express and opinion on the financial statements. The auditor must issue his opinion based on an unqualified, qualified, adverse, or disclaimer of opinion. (Oakwood, 2006)Financial and compliance audits are performed by internal auditors. Financial audits focus on more of the adequacy of the process rather than just the financial

Legal Regulation of Corporate Governance in the Role of Auditors

2552 words - 10 pages take into account. Moreover, how the company’s policies, and management’s monitoring activities function through the whole process, and whether these procedures serve to deter and detect financial statement fraud’. The audit expectation gap highlights a high expectation for auditors to take a far more significant role in detecting and deterring fraud and illegal activity. The aim is for the auditor to ‘obtain reasonable, but not absolute

Aspects of Materiality: A Continuing Education Report

1502 words - 6 pages around the country. At some level, each staff member will implement the concept of materiality in the audit work performed. Understanding materiality allows the staff to perform audit procedures with efficiency and effectiveness to achieve the desired testing results. Each stage of the audit process incorporates materiality; therefore, staff must understand the definition of the concept, determine the process for measuring materiality, and have

Auditing - The Risk-Based Approach

1485 words - 6 pages process and the clients company. In order to do this the auditor must have an up to date insight of the clients business and activities. This knowledge is gained through the way the client operates their business, management and internal and external environments. The knowledge gathered can help to design the audit program that includes '...the most effective and efficient combination of tests responsive to each client's unique circumstances


4620 words - 18 pages bank muamalat. 06 Feb 2013 (Wednesday) -View a blue file (permanent audit file) : PILOT POWER SDN. BHD NALURIAN SDN. BHD -Having a short quiz and interview with staff. -Discuss the answer and learn to interpret the documents. -Learn on how to record the journal EPF and SOCSO. Learning process 07 Feb 2013 (Thursday) -Having a first meeting session with En. Zul. -Learn on how to use UBS. -View the audit report contained in the audit file


4620 words - 18 pages bank muamalat. 06 Feb 2013 (Wednesday) -View a blue file (permanent audit file) : PILOT POWER SDN. BHD NALURIAN SDN. BHD -Having a short quiz and interview with staff. -Discuss the answer and learn to interpret the documents. -Learn on how to record the journal EPF and SOCSO. Learning process 07 Feb 2013 (Thursday) -Having a first meeting session with En. Zul. -Learn on how to use UBS. -View the audit report contained in the audit file

Similar Essays

Audit Essay

1293 words - 6 pages . These costs and time investment may cause the shortage of the company’s financial capital and reduce quality of audit. If the company is required to rotate the audit firm, they must invest more monetary cost, time and workforce to investigate and hire new appropriate audit firm. During this process, the company has to research available audit firms, meet with each audit firm, review audit firms’ proposals and interview appropriate audit firms

Audit Performance In An Organization Essay

967 words - 4 pages their auditors have no other interests with the organization or its stakeholders. At the end of an auditing process an auditor is supposed to give an opinion based on the assessment done. The auditor is supposed to make assertions and assurance in addition to the client’s assertion. There is a difference between review and audit of financial information because of the level of assurance. An audit provides a high level of assurance on the financial

Wk2assgn Fbozant Essay

853 words - 4 pages include discussion of business risks. The requirement to include risk factor disclosures, of course, means that the audit committee must be knowledgeable about risks to ensure the disclosures are complete. By definition, SEC reports that do not include expected business risks will not be non-compliant financial reports. So, the expectations have grown from just needing to oversee the financial reporting process to potentially reviewing all

How To Enable The Audit Of Active Directory Objects In Windows 2008 R2

1217 words - 5 pages service access iv) Audit logon events v) Audit object access vi) Audit policy change vii) Audit privilege use viii) Audit process tracking ix) Audit system events 9. Double click “Audit directory service access” to display the following dialog box. Figure: Properties of the “Audit directory service access” policy 10. Check “Define these policy settings” and then check both “Success” and “Failure” attempts. 11. Click “Apply” and “OK” button to