Question

Why isn’t all audit work done simultaneously?

Answer 1

Why isn’t all audit work done simultaneously?

Answer:-

The auditor should properly plan the audit of internal control over financial reporting and properly supervise the engagement team members. When planning an integrated audit, the examiner ought to assess whether the accompanying issues are critical to the organization's fiscal reports and interior command over monetary announcing and, provided that this is true, how they will influence the evaluator's systems -

1. Information of the organization's inward command over money related revealing got amid different commitment performed by the reviewer;
2. Matters influencing the business in which the organization works, for example, money related revealing practices, monetary conditions, laws and controls, and mechanical changes;
3. Matters identifying with the organization's the same old thing, including its association, working qualities, and capital structure;
4. The degree of late changes, assuming any, in the organization, its activities, or its inner command over money related detailing;
5. The auditor's preliminary judgments about materiality, risk, and other factors relating to the determination of material weaknesses;
6. Control deficiencies previously communicated to the audit committee⁸ or management;
7. Legal or regulatory matters of which the company is aware;
8. The type and extent of available evidence related to the effectiveness of the company's internal control over financial reporting;
9. Starter decisions about the adequacy of inner command over money related announcing;
10. Open data about the organization important to the assessment of the probability of material budget report misquotes and the viability of the organization's interior power over money related revealing;
11. Information about dangers identified with the organization assessed as a feature of the examiner's customer acknowledgment and maintenance assessment; and
12. The general intricacy of the organization's tasks.

Note: Many littler organizations have less intricate tasks. Furthermore, some bigger, complex organizations may have less perplexing units or procedures. Variables that may demonstrate less unpredictable tasks include: fewer business lines; less complex business processes and financial reporting systems; more centralized accounting functions; extensive involvement by senior management in the day-to-day activities of the business; and fewer levels of management, each with a wide span of control.

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