Question

While each real-life scenario is different, if you were hired as an auditor to investigate a company, what would be your strategy to approach the audit?

Answer 1

Following point kept in mind / statergy to approach the audit

• The auditor may decide decide to discuss element of planning with the entity's management to facilitate the conduct and management of the audit engagement.
• When discussing often occur,the overall audit strategy and the audit plan,care is required in order not to compromise the effectiveness of the audit.
• The auditor shall plan the nature,timing,extent of direction and supervision of engagement team member and rewie the work
• The audit should be organized to cover adequately all aspects of the enterprise relevent to the financial statement being audited.
• To form an opinion,the auditor should be resonably satisfied as to whether the information contained in the underlying accounting records and other source data is reliable and sufficient as the basis for the preparation of the financial statement.
• To obtain reasonable assuurance about whether the financial statement as a whole are free from material misstatement;and
• to report on the financial statement,and communucate as required by the SAs,in accordance with the findings.
• An examination of the system of accounting and internal control to ascrtain whether it appropriate for the business and helps in properly recording all transactions.
• Reviewing the system and procedures to find out whether they are adequate and comprehensive and incidentally whether material inadequacies and weakness exist to allow frauds and errors going unoticed.
• Checking of the arithmetical accuracy of the books of account by the verification of posting,balances, etc.
• Verification of the authenticity and validity of transaction entered into by making an examination of the entries in the books of account with the relevent supporting documents.
• Reporting to the appropriate person/body whether the statement of account examined do reveal a true and fair fair view of the state of affairs and of the profit and loss of the organisation.