Question

Application of Auditing Principles

1 - Integrity, Independence and Objectivity

2 - Confidentiality

3 - Skill & Competence

4 - Work Performed by Others

5 - Documentation

6 - Planning

7 - Audit Evidence

8 - Accounting Systems and Internal Controls

9 - Audit Conclusions and Reporting

Explain one (1) way you anticipate using what you have learned from this course in your current or future career. Provide one (1) specific example to support your response. Also, what content do you still have a question about? What is your recommendation to obtain an answer?

Answer 1

Answer:

For giving genuine and fair view on financial statements it is important to do audit in legitimate way so all aspects of auditing cover in audit.

For doing audit it is exceptionally important to follow audit standards so audit is done rapidly and precise way and All prerequisites of " Standards of Auditing " is accumulated ,for instance SA 501 deals with audit proof ,on the off chance that we don't keep audit proof so we are gone under expert offense.

For there is no prevention in audit it is extremely important to do planning before arrival customers place. In such a case that we visit customer place without planning we are not ready to discover what to do first or last and it costs us time wastage and viability of our audit.

According to SA 230 audit documentation is important . audit documentation helps in assist the commitment group to design and perform audit for following years from now additionally .

Integrity independence & objectivity is fundamental in light of the fact that giving biasless feeling on budget reports just conceivable when we are independent . So subsequent to perusing this part we can understand how hazardous is take audit of relatives..

Example:

I have do audit of one of branch of union bank of India .

1.

Autonomy or independence :

Audit of banking segment is vital impact on economy .So it is particularly required that auditor must be independence .

2.

Confidentiality :

Data given by customers in banking is exceptionally secret so it is auditor obligation to keep up privacy of information acquired during audit.

3.

Skill :

For audit skill and ability is extremely vital . He/she ought to know about financial guideline and bank programming.

4.

Work performed by others :

It is important to keep documentation of work performed by others so it fixed obligation on others .

5.

Documentation helps in future audit and testing .

6.

Planning encourages in bank to how to begin audit and how loans are checked and which advance/accounts need consideration and master advice.

7.

Audit proof assistance auditors to shield himself that he is accomplish his work precise and appropriate way.

8.

Accounting framework and internal control is characterize how much misrepresentation is conceivable in entity . How much internal control is strong chances of frauds are low .

9.

Audit conclusion & reporting :

Reporting is basic part of auditing .BY reading conclusion client can comprehend whether substances or entities are doing acceptable are not .