Explain how you plan for conducting an audit. Explain the objective of conducting an audit and the responsibilities involved in the audit process.© BrainMass Inc. brainmass.com October 17, 2018, 3:16 am ad1c9bdddf
The planning of conducting an audit should include analyzing the company and industry, analyzing the business unit, identifies the deliverables, identify the audit scope, develop the project audit, and continue ongoing planning and analysis (www.office.microsoft.com).
The first step of planning of conducting an audit would be to analyzing the company and it will include studying the client's business and industry. This step of analyzing the company will include researching information that will affect the company such as political, economic, and major events. The client's internal practices are very important for understanding the business and factors that will affect the audit such as restricting, management change and large increase of sales (www.office.microsoft.com).
The next step would be to analyze the business unit and it will include gathering different levels of data about the business from such employees' profiles, company charts, and supporting documentation for current initiatives (www.office.microsoft.com)
The third step of the planning of conducting an audit would be to identify the deliverables and would include identifying regulatory changes that will affect the delivery of the completed audit must be made known in advance (www.office.microsoft.com).
The next step of planning the conduct of an audit would be to identify the audit scope. This step will include creating ...
The expert examines conducting an audit plan. The process that is used to conduct this plan is determined.
Audit program outlines
Audit program outlines in detail what an auditor plans to do and the expected required time to accomplish each task. An audit engagement may involve more than one audit program. For example, we can have an audit program for accounts receivable, one for cash, one for inventory, etc.
can you describe the benefits of audit program in terms of resource planning and other aspects of auditing?
Auditor before they accept a new client or continue to service existing clients, they conduct audit risk. It is not always possible to completely avoid risk. Our attempt is always to keep it at an acceptable level. The Audit Risk Assessment involves considering multiple factors one of which is management integrity. If the leadership of a company is engaged in an illegal activity, this raises a red flag on the Audit Risk assessment.
Planning is an important part of auditing. Planning involves acquiring full understanding of the business to be audited and its environment, the internal control, and the audit risk. It is also at this stage that the audit determines what it considers to be a material misstatement.
What is materiality (in your own words)? What steps would you apply to determine materiality?