Question

What audit concepts and/or skills will be most useful to your professional life in the accounting field or as an employee of an audited company? Please explain and provide specific examples. 

Answer 1

Answer With proper explanation  

Audit concepts and skills which will be useful are like professional skepticism, one person should not disclose client information, and should have a proper judgement making. Data is a very important resource, a auditor should be very careful with the data. We improve a lot of communication skill, which are very much important in a life, proper communication will deliver correct message. We tend to develop a lot critical thinking , which is very important in our life, our mind will work and things in all ways.

Following are some audit concepts required to auditor in his professional life: Professional Skepticism: The auditor remain alert to the conditions and transaction that may cause the financial statements to be materially misstated. For Example: the auditor noticed a huge other incomes without having it, that may leads to window dressing of financial statements to show better financial position. Ethical Requirements: Integrity - auditor should be straight forward, honest in performing his duties. Confidentialty - auditor should not disclose clients information to any one, unless required by law. Professional competence - auditor should update him self in line with current undergone changes in economy. Objectivity - auditor should be free from external/internal forces. Independence - auditor opinion should not affected by any other parties. Professional behavior - auditor should have good communication skills, ability to understand the situations, questioning mind and good temper. Profesaional judgment: The auditor should exercise professional judgment in planning and performing an audit of financial statements

While working as an employee in accounting field or in an audited company,one have to work on the data provided by other employees or even if we are in even superior position we will be responsible in approving the accounts and responsible in creating and maintaining internal controls.Such auditing concepts and skills helps us in detecting mistatements which may either caused due to error or fraud.