Going on site provides the auditor the opportunity to meet with key employees or new employees and to see for him or herself any changes in the overall operations of the client.
In this case there is no previous chalked-out programme. Identifying Your Objectives Objectives should be specific, measurable, attainable, realistic and time constrained.
He should also thoroughly acquaint himself with the accounting and internal control procedures as well as the financial statements of the enterprise. Provide examples in your plan.
The plan of action is called audit programme. The agreement with the client. The auditor should obtain a list of the various offices and factories of the enterprise indicating their sizes, the nature of activities carried outa description of how audit staff can get to each location.
Standardized audit approaches interfere with planning because the auditor spends more time filling out forms at the expense of effective planning. In audit planning there are certain matters to consider in planning an audit. Examining previous audit plans generated by your company can give you an excellent head start.
The planning stage involves determining the Audit strategy as well as identifying the nature and the timing of the procedures to Be performed. For instance, the computation of the gross profit percentage compared with that of the previous year will provide a good indicator to the auditor of the accuracy and reliability of sales and cost of sales.
This includes perusing manuals that describe the quality-management system in place. Ideally, these discussions take place at the client location. Be sure to include a time line and the location of the audit. To enable the auditor determining his staffing requirement.
Appropriate procedures would include: It also involves determining the combination of strategies that the auditor adopts in order to achieve the audit objectives. Define the scope of the audit. Also, provide a list of the documents needed to conduct the audit. Have a kickoff meeting to mark the start of the audit.
Audit planning is an an internationally accepted auditing standard. In particular, the standard institutes the concept that the auditor is required to acquire an understanding of business risks and important risks to the extent that they are applicable to the financial statements. Meeting one deadline is not good enough when one or more other items are delivered late.
An effective audit program provides comprehensive guidance to auditors in testing key areas to obtain quantitative data to make an informed recommendation based on the findings.
The best time to understand these expectations is during the planning discussions with the client. In case of significant variations, this should be discussed with management to make sure that the valuation is suitable.
The responsibility for the preparation of the financial statement and presentation of the information included therein rest with the management of the company.
Preparing drafts of footnotes to comply with the new standards allows the auditor and the client to have sufficient time to discuss and understand the new standard and to draft a meaningful footnote. The audit plan is usually based on a clear understanding of the nature of the clients business and the environment in which the business is conducted.
The overall strategy should focus on a more efficient and effective audit. The auditor should carefully study the organizational structure of the enterprise including the organizational chart and the administration and procedure manual and keep them in the audit file.
Developments such as mergers, new locations or new product lines may have a significant impact on the audit plan for the current year. These insights set the stage for an active 2-way communication process that results in a fully engaged auditor AND client throughout the entire process, leading to the completion of a successful audit.
Determination of the audit strategy requires a high degree of professional judgement. The audit team customizes and eliminates forms when the audit complexity is low. To facilitate and early production of the audit report by the auditor.Audit and Audit Standards Essay. vulnerabilities and the efficacy of defense and mitigating mechanisms in place and those intended to be implemented in future.
Read this essay on Audit Planning Memo. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more. Only at killarney10mile.com". Audit Planning Essay Sample. Auditing planning and reporting are two critical stages in whole audit Cycle.
Audit planning is before beginning of field work and reporting is last Stage in bank audit Good planning leads to effective Reporting. Assignment 2: Audit Planning and Control It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit.
External public accounting firms conduct external audits to ensure outside stakeholders that the company’s financial statements are prepared in accordance with.
More Essay Examples on Risk Rubric. Insights gained from this discussion help the auditor navigate through the remainder of the audit planning procedures. These insights set the stage for an active 2-way communication process that results in a fully engaged auditor AND client throughout the entire process, leading to the completion of a successful audit.
a) Audit Plan Audit planning is developing an overall strategy for the audit.
The nature, extent, and timing of planning varies with size and complexity of the entity, experience with the entity, and knowledge of the entity's business.Download