Procedures that auditor adopts, Auditing

Assignment Help:

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.


Related Discussions:- Procedures that auditor adopts

Inclusion in a report of investigation, Question : (a) Describe the fol...

Question : (a) Describe the following terms: 1) Forensic Accounting; 2) Forensic Investigation; 3) Forensic Auditing. (b) Explain the basic elements to consider for

Auditors procedures - audit process, Auditors Procedures - Audit Process ...

Auditors Procedures - Audit Process The relevant authority on post balance sheet events is ISA. The preparation of loss and profit account and balance sheet will forever inclu

The existence of the auditing profession, Auditing appears to be a worse of...

Auditing appears to be a worse of time considering financial fraud cases in Zimbabwe and world over. Justify the existence of the audit profession and what to be done to improve it

Joint auditing, what is the role of a joint auditor

what is the role of a joint auditor

Advantages and disadvantages of internal audit?, Benefits of Internal Audit...

Benefits of Internal Audit are following: It is in-expensive. No charted accounted is needed to audit internally. Faults will be removed before preparing financial stateme

Goodwill, How would you value the Goodwill

How would you value the Goodwill

Amounts derived from financial statements, Amounts Derived From Financial S...

Amounts Derived From Financial Statements Please note here the auditor is interested in preceding year's evidence since 1. The Companies Act states such corresponding amounts

Higher normal risk, Higher  normal risk Several audit assignments invo...

Higher  normal risk Several audit assignments involve high audit risk and usually in any client there will always be at least one high risk area.  Indications that an audit has

Reference to an expert in auditor’s report, Reference to an expert in audit...

Reference to an expert in auditor’s report When issuing an unmodified auditor’s report, the auditor must not refer to the work of the expert. This is because such a reference m

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd