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
Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The


You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

Party Disclosures used by IAS 24 IAS 24 utilized the following related party disclosures that 1. Nature of relationships between subsidiaries and parents, even whethe

Judgmental Sampling The Judgement sampling is where, auditor using his own experience and awareness of the client's business and situations selects the sample to be tested with

Internal audit is an independent assessment function which is recognized by the management of an company for the review of its internal control system as a service to the company.

list and explain four factors that influence the auditor''s judgement regarding the sufficiency if the evidence obtain

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Necessity of Accountant The accountant is not necessary To expand his enquiries beyond the information enclosed in the relevant documents as supplemented through such e