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How is the scope of an audit established?
It is established by determining the boundaries for the engagement and should reflect the audit objectives
How do auditors reduce audit risk?
planning proper staffing :- recruitment(qualified staffs), retention, training engagement letter internal control system
3 general types of quality audits?
3rd Party Audit - Independent Audit 2nd Party Audit- Customer Audit 1st Party Audit- Internal Audit
What is the Difference between HR audit And Financial Audit?
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
Differences between audit plan and audit program?
difference between audit program audit & note book
Is an audit engagement and an attest engagement the same in accounting terms?
yes an audit engagement is a type of attest service where you provide assurance on information in the financial statements.
When should an audit engagement letter be issued to an audit client?
It should be issued during the planning stages of the audit
How is the scope of an audit established?
It is established by determining the boundaries for the engagement and should reflect the audit objectives
What is one reason that audit quality can suffer?
Research has found that audit quality suffers when the auditor has an incentive to limit the amount of audit testing to ensure that the engagement remains profitable.
What is The Audit Process?
the process is triyngstages of auditngaudit planning i e annual planning and engagement planningrisk assessmentgathering the findingstesting of the controlsdocumentation of the working papersreporting of the audit findings to the board
What is partial audit?
An audit which is conducted considering the particular area of accounting. Under partial audit, audit of whole account is not conducted. Generally, transaction of business is related to cash, debtor, creditor, stock etc. A business may conduct an audit of any of these transactions. An auditor should conduct audit of that transaction as per the scope determined by the agreement. An auditor sign the report clearing stating that the engagement is 'partial audit'. If it is not done so, an auditor will be liable for the loss which is caused due to using the report as complete audit.
How do auditors reduce audit risk?
planning proper staffing :- recruitment(qualified staffs), retention, training engagement letter internal control system
What is non assurance engagement?
An assurance engagement is any engagement that increases the level of confidence of third parties and management towards the outcome of an evaluation or measurement of a set of financial statements in accordance with the criteria of the financial reporting standards. This term usually refers to an independent audit. A non-assurance engagement is therefore an engagement that doesn't impact on the level of confidence in the validity of the financial statements. For example, a compilation of financial information or consulting engagement, such as tax or management consulting.
What is most common type of attest engagement?
A financial statement audit is, by far, the most common type of attest engagement. The overall assertion, made by management, most frequently is that the financial statements follow generally accepted accounting principles.
What is assurance and non-assurance engagement?
An assurance engagement is any engagement that increases the level of confidence of third parties and management towards the outcome of an evaluation or measurement of a set of financial statements in accordance with the criteria of the financial reporting standards. This term usually refers to an independent audit. A non-assurance engagement is therefore an engagement that doesn't impact on the level of confidence in the validity of the financial statements. For example, a compilation of financial information or consulting engagement, such as tax or management consulting.
What is the process of Auditing?
the process is triyngstages of auditngaudit planning i e annual planning and engagement planningrisk assessmentgathering the findingstesting of the controlsdocumentation of the working papersreporting of the audit findings to the board
Can cost accountant do the internal audit of the company?
Cost Accountant can very well do the internal audit of the company. Since internal audit is the 'seeing us inside' and also the scope is the operations and compliance part of the activities, cost accountants have expertise in conducting the same. They are the 'most fit' professionals for conducting internal audit of manufacturing operations, processes and activities and assessing the risk involved in each area. The new Companies Act, as such, recognises cost accountants along with other finance professionals for award of internal audit assignment. And internal audit has been made mandatory for certain class of companies. But, the cost accountants who are engaged in cost audit assignment of the company cannot be engaged for internal audit of the same company as the engagement would affect objectivity and there may be conflict of interest.
