Question

Can we state and briefly discuss the six articles of auditing?

Answer 1

An audit is a formal check of financial accounts of an indivdual,business or organisation.An internal audit is conducted by the menbers of the same company or organisation,and an external audit is conducted by a regulatory agency or by a government agency.There are six specific steps in the audit process taht should followed to ensure a successfull audit.

REQUESTING DOCUMENT

After notifying the organization of the upcoming audit,the auditor typically requests documents listed on an audit preliminary checklist.These documents may include a copy of a previous audit report,original bank statements,receipts and ledgers.

PREPARING AN AUDIT PLAN

The auditor looks over the information contained in the documents and plans out how the audit will be conducted.A risk workshop may be conducted to identify possible problems.an audity plan is then drafted.

SCHEDULING AND OPEN MEETING

Senior management and key administrative staff are then invited to an open meeting during which the scope of the audit is presented by the auditor.A time freame for the audit is determined,and any timing issues such as scheduled variations are discussed and handled.

CONDUCTIND FIELD WORK

The auditor takes information gathered from the open meeting and uses it to finalize the audit plan.Field work is then conducted by speaking to staff members and reviewing procedures and processes.The auditor tests for complaince with policies and procedures.The auditor may discuss problems as they arise to give the organization an opportunity to respond.

DRAFTING A REPORT

The auditor prepares a report detailing the findings of the audit.Included in the report are mathematical errors,posting problems,payment authorized but not paid and other discrepancies;other audit concerns are also listed.The auditor then writes up a commentary describing the findings of the audit recommended solutions to any problems.

SETTING UP A CLOSING MEETING

The auditor solicits a response from mangement that indicates whether it agrees or disagrees with problems in the report,a discription of management's action plan to address the problem and a projected completion date.At the closing meeting,all parties involved discuss the report and mangement responses.If there are any remaining issues, they are resolved at this point.