When inspecting a limitation.The auditor should confirm the independence of the auditing company.He can not carry out the inspection, if the numbers on the board of directors or a shareholder of the company.
Initiation audit - a very important point.Management should issue an order to conduct the audit.Be sure to sign a contract with the company auditor.Only then the work begins.
verification process can be divided into four stages.The first stage - the planning.At the second stage, the evaluation of internal control system and significant transactions.The third stage consists in applying analytical procedures and substantive procedures.
Completes the process of the formation of the final review of the analytical procedures.After that issued the auditor's report.
Plan consists of two phases: strategic planning and overall planning of audit procedures.In the course of the audit procedures the specialist should find support existing figures show that there are no material misstatements.
preparing the strategic plan, the auditor examines the performance of the client and compares them with the existing on the market in the industry.For example, if the average profit in the industry is 10%, and the company indicates 70% of the profits, the auditor should carefully consider this point.
complexity of the audit procedures and the list depends on the client's business and on the first or second time, the auditor shall audit the company.Only after the overall strategic planning of the auditor begins to plan on its merits.
A lot of attention is paid to the second stage, in which an assessment of the internal control of the company.The rating system is carried out to prepare the correct audit procedures.
If the enterprise a powerful system monitoring, management promptly respond to changes in legislation, implementing stricter financial supervision and control of the production process - in this case, the auditor's procedures may be less bulky.
Sometimes the system of internal controls, enterprise absent or very weak.Then audit procedures essentially have to do more voluminous.
third phase of the audit is to conduct analytical procedures and substantive procedures.
At the last stage of a review of all audit documents and evidence on the project and the auditor's report is issued.It can be of two types - unqualified and modified.The first is given when no substantive comments.
modified may be granted with the stipulation be negative.And possible rejection of the opinion.It all depends on the results obtained during the audit.
- Modalities audits