Month: January 2022

The auditor must arrange to plan his audit in some details. The plan will involve preparation of a memorandum showing the following aspects: The staff members who will do the audit work The outline of the audit work to be Read More …

The most important aspect is that before the start of the audit, the auditor must establish and discover as much as possible regarding the following: The present and the future trends and prospects regarding the industry into the client operates Read More …

The stages that are involved in a modern audit consist of the following:  Background research Audit plan preparation Review of the accounting system Review of internal control system Analytical review Preparation of the audit report These stages are explained here Read More …

Introduction An audit can be carried out on the enterprises both large and small, and both new and well established. The audit of smaller enterprises has special features. This chapter describes the stages involved in the audit of an established Read More …

A management audit may be defined as an enquiry into the advisability of any of the policies of the board of directors in furthering the objectives of the business as defined in the memorandum and /or into the efficiency with Read More …

The extent of reliance on the internal audit work depends upon many factors some of which include the following: Materiality Level of audit risk Judgment level required Sufficiency of complementary audit evidence Specialized skills of the internal auditor In conclusion Read More …

The external auditor may rely on the work of internal auditor while carrying his/her audit work. The internal and external auditor must co – operative due to the following reasons: Internal audit forms part of internal control system which has Read More …

The internal auditor’s approach to his/her work depends on how his/her role is defined in organizational chart but most of the internal audits are included in the following broad definitions Operational Audits – this means an audit of a specific Read More …

Introduction Generally the audit to be undertaken depends on the reason as to why the auditing exercise is required. There are quite a number of types of audits. These are:  Statutory Audits Private Audits  Internal Audits Management Audits Government Audits Read More …

Internal control system is of paramount important in any business enterprise. The following are the reasons why the system is important: Enables management to carry out the business in an orderly and efficiently Internal controls lay down the various procedures Read More …