Procedures that auditor adopts, Auditing

Procedures that Auditor Adopts

The auditor’s procedures will include:

(1) Getting an understanding of the entity as a whole in order to see the accounting system in proper perspective and thus be able to assess how effective and appropriate the system is;

(2) By use of enquiry or internal control questionnaires or reading manuals ascertain the complete system;

(3) Record the system that he has ascertained either in the form of narrative notes, flow charts, check lists or answers to the ICQ;

(4) If the auditor intends to rely on the internal control then he further has to record the system of controls in detail;

(5) If the system's record was provided by the client or was obtained through reading manuals, then the auditor must perform walk through tests to confirm the correctness of the record and also his own understanding of the system;

(6) The auditor then performs a preliminary assessment of the system, and if he is relying on controls then he performs a preliminary evaluation of those controls;

(7) If the system of controls and accounting seems adequate and the auditor feels that he can rely upon the controls he then designs and performs compliance tests. However, if he does not wish to rely on the controls then he performs substantive tests on the records;

(8) He has to evaluate his evidence and form an opinion on whether proper books of accounts have been kept and whether the books of accounts form a reliable basis for the preparation of the financial statements.

Posted Date: 12/3/2012 5:57:33 AM | Location : United States







Related Discussions:- Procedures that auditor adopts, Assignment Help, Ask Question on Procedures that auditor adopts, Get Answer, Expert's Help, Procedures that auditor adopts Discussions

Write discussion on Procedures that auditor adopts
Your posts are moderated
Related Questions
#quInternal Audit checklist for fixed assetsestion..

Provide the data regarding all about auditing of Newspaper agencies

Share and deposits Shares may consist of subscription shares and paid up shares. Interest on shares might be credited to the accounts rather than being paid to ensure proper co

Describe the management system within your case study business. Assess the risk of fraud in this business, and suggest methods for detection Management system in this ca

As a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Local Corporation (TLC). In addition, the p

Standard Defines Development and Research The standard defines development and research as follows: (a) Research - planned and original investigation undertaken along with

should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies that to the test of his knowledge

Length: 2000 words Submission method options Alternative submission method Task Question 1 (5%) Case: Battersby and Associates Chartered Accountants is a successful mid-tier ac

Deferred Taxation - Audit Process Deferred Taxation results from the fact such the income tax department require different rules for calculating profits from those used throug

Long Term Contracts - Audit Process The authoritative document with reference to long term contracts is IAS 11: Construction Contracts and IAS 18: Revenue Recognition, and ISA