Auditing Process

In: Business and Management

Submitted By Firefox2010ova
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Complete overview of an Audit

Executive summary
A financial audit refers to the verification of the financial statements of a company by an audit firm in order to express a professional opinion regarding their credibility. This process begins when a client approaches the auditor if deemed reputable the auditor accepts he begins by planning how to carry out the audit. This is done by assessing several factors such as risk, materiality etc. and then obtaining feedback in order to draw up the audit plan. At this point an audit team is assembled based on the audit strategy who visit the clients premise to carry out the procedures agreed upon in the planning stage through practical work or field work. Once enough evidence is accumulated to support the auditor’s opinion a draft audit report is drawn up. The client is contacted after this and feedback is obtained to make final necessary adjustments. Once finished the final audit report is issued which expresses the auditors professional opinion and recommendations, depending on the issues at hand a follow-up review may be carried out afterwards to see clients progress in adopting the suggested changes thus concluding the audit process.

Table of Contents Particulars | Page # | Introduction | 3 | Stage 1: Planning | 3 | Step 1: Notification/Engagement Letter | 4 | Step 2: Audit Strategy | 4 | Step 3: Initial Meeting | 4 | Step 4: Planning Analytical Procedures | 5 | Step 5: Risk, Materiality and Control assessment | 5 | Step 6: The Audit Plan | 5 | Stage 2: Fieldwork | 6 | Step 1: Gathering sufficient relevant evidence | 6 | Step 2: Notification and Communication | 7 | Step 3: Audit Summary and Working papers | 7 | Stage 3: Reporting | 8 | Step 1/2: The Exit conference | 8 | Step 2/1: The Draft audit report | 9 | Step 3: The Client management response | 9 | Step 4: The Client…...

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