Day: April 3, 2021

We dealt with the principles of audit evidence in an earlier . This  deals with the application of those principles.   Audit procedures must be designed to respond to the specific risks of material misstatement identified for each individual client. Read More …

The need for internal audit   Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations.   Companies must create a strong system of internal control in order to fulfil their Read More …

Effect of controls on the audit   This  considers the basic components of control systems and how the auditor fulfils their objectives for assessing control risk.   The auditor will ascertain the internal control system to assess whether it is Read More …

Audit evidence   In order for the auditor’s opinion to be considered trustworthy, auditors must come to their conclusions having completed a thorough examination of the books and records of their clients and they must document the procedures performed and Read More …

Purpose of planning   ‘The objective of the auditor is to plan the audit so that it will be performed in an effective manner.’   [ISA 300 Planning an Audit of Financial Statements, 4]   Audits are potentially complex, risky Read More …

Audit risk   One of the main requirements of the audit is for the auditor to:   ‘…obtain sufficient appropriate evidence to reduce audit risk to an acceptably low level…’   [ISA 200 Overall Objectives of the Independent Auditor and Read More …