This website uses cookies to ensure you have the best experience. Learn more

What Should Auditor Audit Essay

608 words - 3 pages

What Should the Auditor Audit? Successful operational auditing begins with the auditor understanding the business: What are the core products, business units, and employee and customer bases? How can the auditor begin to survey the business to begin to put an audit plan together? What resources are available or should be accessed by the auditor?
There are various types of audits depending on the specific type of audit being performed. However, even though there are different types of audits, the audit procedure should remain the same. The audit should look for compliance with the policies and procedures. The Auditor should investigate and evaluate the level of compliance and the effectiveness of the company or organizations. Depending on the type of audit being performed, the audit will evaluate and identify financial issues within the company to determine if it finances are allocated the way they are supposed to be. The auditor also ...view middle of the document...

Planning for the audit should consist of, but not limited to, the following guidelines:
-Discussing the Sarbanes-Oxley fulfilment and compliance.
-Accessing the organization facility to get a better vision of the process and procedures.
-Analyze the internal information and procedures that are currently in place.
-Explain the process to the individuals in the organization based on what has been done and what need to be done.
-Investigate the internal documents to get a better understanding of the company’s policies, employee practices, description of various job functions and the organizational chart of the company.
One of the most important things that all auditors should do is evaluate the relevance and reliability of a company or organization. In my opinion these two are the heart of providing good reports. Relevance is important because it produces the evidence that is directly related to the information that an auditor is trying to substantiate. Evaluating the reliability gives a since of dependability, whereas the auditor can depend on the information to provide them in the right direction of the audit being performed. Often times, the information is more reliable of can be depended upon if it is well-written as oppose to oral communication. Auditors should audit the aspect of the business or organization to determine the level of efficiency and the level of effectiveness and make a formal report of what needs to be evaluated or corrected. The auditor will make a recommendation to the organization of the negative findings that will impact the organization. Every auditor should audit the various functions of the organization to ensure that the organizations are operating in compliance with the laws.
Resources available for auditors:
-SEC: Security and exchange commission.
-The Sarbanes-Oxley Act.
-IIA: Institute of Internal Auditors.

CareersinAudit (CIA). 2014. Internal vs. External Auditors, What’s the difference?
PCAOB (Public Company Accounting Oversight Board). 2014. Auditing Standard No. 13.

Other Papers Like What Should Auditor Audit

System Integrity and Validation Essay

946 words - 4 pages audit is appropriate for Kudler. To conduct the audit the auditor will use computer assisted audit tools and techniques (CAATTs) or in Kudler’s case computer assisted audit techniques (CAATs). The following brief is an explanation of how CAATs is used to validate data and the system integrity, and explain audit productivity software. CAATs CAAT is techniques that increase the auditor’s productivity and effectiveness during the audit function

Accounting Essay

1199 words - 5 pages predecessor and successor auditors, state that before accepting an audit engagement, the successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor’s *understanding as to the reasons for the change of auditors 14. During the audit of the A/R function, you found that the A/R turnover rate had decreased from 5.3 to 3.3 over the last 3 years. What is the most likely cause? *A more liberal credit policy

Impact of Ict on Accounting Practice in Nigeria

1690 words - 7 pages . Evidence is obtained via direct observations. Testimonial. Statements made by customers/management; typically needs to be corroborated. Audit programs should also consider the source of information/evidence (has it been "tainted"?): Internal (bank account reconciliation, for example) Internal - External - Internal (check) External - Internal (bank statement) External (bank account confirmation returned directly to the auditor) Various

Generally Accepted Auditing Standards

1503 words - 7 pages continues with on-the-job training in developing and applying professional judgment in the real world audit situations (McGraw Hill). If the auditor doesn’t have the background in the technical training, he will not be able to perform the audit at a high level. This section provides practice in performing what is known as the assurance function. This is where auditors learn to recognize the underlying assertions being made by management in each

Should Schools Be Audited?

3674 words - 15 pages -through agencies and the recipients of pass-through funds must be especially cognizant of the $500,000.00 threshold. Local, state and federal pass-through funds should be brought to the attention of your auditor. Program-Specific Audits A program-specific audit is an audit of one (1) specific program, funded either by federal, state, or local funds or a combination of funding sources. Program-specific audits are normally conducted in

Documenting Independence and Objectivity: a Well-Written Charter Provides the Framework and Purpose for Internal Audit Conduct

563 words - 3 pages handle these conflicts. The charter should also state that the internal audit will not be influenced by individuals within the company when they are doing their obligations and what consequences will be taken if the internal auditor lacks that independence and objectivity. Within that charter, it should also include some examples of their operational duties, it should also include steps that should be taken if an internal auditor should take on

Cae Study Enron

1722 words - 7 pages . Actuarial services use mathematical and statistical models to evaluate financial risk a company may have. An auditing firm may skew the numbers of statistics in their favor or benefit is a common threat in this area. These three services can be done by an auditing firm that provides auditing services for the client but an accountant should and cannot audit his or her own work. So if one auditor works on the bookkeeping, actuarial services, or

Auditing: a Practical Approach

1286 words - 6 pages avoid errors. When planning controls, an auditor should take in consideration all possible scenarios (What can go wrong WCGWs) which would result in an error. By designing effective controls the auditor can prevent and correct detected errors as soon as possible. Detect Controls help to discover an error or fraud that may have occurred during transaction processing and to correct those errors. Detect controls usually applied outside the

Week 2 Quiz and Multiple Choice

940 words - 4 pages Week 2 Quiz 1. Evidence obtained from third parties, such as, vendors or creditors, is more reliable than evidence obtained from an audit client.  (True/False) (10%) True   2. According to the third generally accepted standard of audit fieldwork, what should auditors obtain in order to afford a reasonable basis for an opinion on the financial statements? (30%) Sufficient competent audit evidence   3. List the components of an audit

External Auditors Do Not Rely on Internal Auditors as Much as They Could – Why?

4169 words - 17 pages essential part of this collaboration it should also be remembered that the internal auditor needs are to meet the requirements of the audit committee, while the external auditor needs to ensure that they comply with the international and national regulations for the audit of the company’s financial statements.  Due to the clash of these two objectives the internal auditor needs to take the initiative for coordinating with the external auditor by

Audit Evidence

1868 words - 8 pages INTRODUCTION 1.     This standard explains what constitutes audit evidence and establishes requirements regarding designing and performing audit procedures to obtain sufficient appropriate audit evidence. 2.     Audit evidence is all the information, whether obtained from audit procedures or other sources, that is used by the auditor in arriving at the conclusions on which the auditor's opinion is based. Audit evidence consists of both

Related Essays

The Effects Of Longterm Auditor Client Relationship On Audit Quality

2445 words - 10 pages correct judgment) and the independence (disclosure of the problem by the auditor) of the accounting firm (Duff, 2004). During the past decade, scandals and economic events have made audit tenure and audit quality center of attention for a lot of debate. Questions are raised from time to time that either auditor should be rotated on regular basis or they should be allowed to build a long-term relationship with the client. The effect of auditor

Hollinger Case Essay

966 words - 4 pages committees? The auditor should communicate to the audit committee the auditor's evaluation of the company's identification of, accounting for, and disclosure of its relationships and transactions with related parties. The auditor also should communicate other significant matters arising from the audit regarding the company's relationships and transactions with related parties including, but not limited to: a. The identification of related

Audit Quality Vs Audit Independence Essay

1590 words - 7 pages ) suggested a ban on non-audit services provided by auditors to restore public confidence. However, there is also another part of audit quality that has not been considered, which is auditor competence. The target of an audit is to “deliver more ideas, solutions and results to achieve financial, operational and competitive advantages” (Ernst & Young 1995); therefore a competent auditor should identify opportunities for improving performance. In

Question Essay

304 words - 2 pages responsibility for initiating these communications? Briefly summarize the information that a successor auditor should obtain from the predecessor auditor. 5. Did the confidentiality agreement that Minkow required Ernst &Whinney to sign improperly limit the scope of the ZZZZ Best audit? Why or why not? Discuss general circumstances under which confidentiality concerns on the part of a client may properly affect audit planning decisions. At what