Auditing planning and reporting are two critical stages in whole audit Cycle. Audit planning is before beginning of field work and reporting is last Stage in bank audit Good planning leads to effective Reporting
Planning (also called forethought) is the process of thinking about and organizing the desired activities required to achieve a desired goal. Planning involves the creation and maintenance of a PLAN. As such< planning is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans; that is , it combines forecasting of developments with the preparation of scenarios of how to react to them. In organizations planning is a management process , concerned with defining goals for company’s future direction and determining on the missions and resources to achieve those target .To meet the goals, managers may develop plans such as a business plan or a marketing plan.
CAS 300 Planning an Audit of Financial Statements requires that an auditor plans Their audit to reduce audit risk to an acceptably low level. Audit risk is the risk that An auditor issues an unmodified or clean audit opinion when the financial statements Are in fact materially misstated. The planning stage involves determining the Audit strategy as well as identifying the nature and the timing of the procedures to Be performed. This is done to optimize efficiency and effectiveness when conducting An audit. Efficiency refers to the amount of time spent gathering audit evidence. Effectiveness refers to the minimization of audit risk.
The Essay on Zoom SnowBoards: Audit Planning Document
Read the Zoom Snowboard case (on Canvas). Please stop at page 1205 …just glance through page 1206. Then, please complete the template below. This audit planning case is worth 5% of your grade. It requires you to be familiar with Chapters 6, 8 and 9. I only need one issue per row. The information must be specific (indicating that you have read the case) and not vague/ambiguous. While this is an “in ...
A report is any information work(usually of writing, speech, television, or film) made with specific intension of relaying information or recounting certain events in a widely presentable form. Written reports are documents which present focused, sailent content to a specific audience. Report are are often used to display the result of an experiment, investigation, or inquiry. The audience may be public or private, an individual or the public on general. Reports are used in Government, business, education, science, and other fields.
The final stage of auditing in the audit process is the audit report-the communication of the findings to users. An audit is the independent examination of the expression of opinion on the financial statements of the company by an appointed auditor in pursuance of that appointment and with compliance with statutory obligation. The responsibility for the preparation of the financial statement and presentation of the information included therein rest with the management of the company.
AUDIT PLANNING
THE MEANING AND NATURE OF AUDIT PLANNING
Audit planning relates to all activities carried out by an auditor In order to determine the objective of an audit engagement. It also involves determining the combination of strategies that the auditor adopts in order to achieve the audit objectives. The audit plan is usually based on a clear understanding of the nature of the clients business and the environment in which the business is conducted. Such an understanding will enable the auditor to establish those crucial matters that must be borne in mind during the audit and those events that the auditor must consider in relation to the transaction of the enterprise during the period. The planning process may generally require that the auditor visits the client’s enterprise to meet with the management of the enterprise. It will also involve a study of other information viz; operational, administrative, legal, and professional which impacts on the client’s business. Audit planning is an an internationally accepted auditing standard. All audits whether small or large must be properly planned. Failure to plan an audit will generally be interpreted as negligence on the part of the auditor. Once negligence is established the auditor maybe made to face the music. Audit planning as several advantages and are listed below, ADVANTAGES OF PLANNING AN AUDIT
The Essay on Qantas – Marketing, Auditing And Planning
Business tools like strategies and customer services tools like software, plans and policies if used properly for the Qantas would help undertaking the formal marketing, auditing and planning. Formal Marketing would come if the marketing strategies are planned based on perfect business tools that are available in the market for market research, customer analysis and marketing strategy ...
1. To clarify the audit objectives i.e a properly drawn audit plan
establish the right means to achieve the objectives of an audit 2. To enable the auditor determine his audit approach.
3.To enable the auditor pay appropriate attention to those aspects of auditing requiring special audit emphasis.
4. To enable the auditor determining his staffing requirement. 5. To enable the auditor determine whether there is need for expert involvement in a particular work. 6. To enable the auditor prepare his audit program.
7. To provide a basis for the control and direction of the audit i.e to assist in coordinating the work done by the auditors and experts.
8. To ensure all aspects of the audit are covered.
9. To ensure that the audit is carried out in an economic and expeditious manner. 10. To facilitate and early production of the audit report by the auditor. 11. To help in enhancing the quality of the audit work.
12. It brings overall promptness and perfection in the performance of the audit work. In audit planning there are certain matters to consider in planning an audit. This is true for both first and subsequent audit assignments. This is discussed in the following section. MATTERS TO CONSIDER WHEN PLANNING AN AUDIT
When planning an audit, auditors generally obtain various information relating to the enterprise and its operating environments. On the basis of the information obtained by the auditors they will be in a better position to take decisions regarding the audit objectives and the combination of strategies to adopt necessary to achieve the objectives in an economic and expeditious manner. The specific matters normally considered at the planning stage in the first year audit must obtain background information about the business and it’s environment. This information base will merely reviewed and updated for any changes during subsequent year’s audit. Below we have specified more information to be considered for both first and subsequent year’s audit, MATTERS WHICH THE AUDITOR SHOULD CONSIDER DURING FIRST YEAR AUDIT The matters considered and information obtained in the first year audit can be sub divided into two categories as follows:
The Term Paper on How FedEx Works : Enterprise Systems
1. List the business processes displayed in the video. A business process is a procedure that systematizes the organization and company policy in order to achieve some of the goals of the company. A procedure is a series of tasks to be imposed. A procedure generally meets the requirements that are not to be discussed by the operator who apply them. Thus it is a set of activities that are edited in ...
(1) Background Information.
(2) Information and decision relating to the current year audit strategy.
BACKGROUND INFORMATION
1. The auditor should be familiar with the nature of the enterprise business including the product(s) sold and services rendered. 2. He should have thorough knowledge or the operating environment including the state of the economy , the state of the industry to which the business belongs, the composition of the industry and their relative competitive strength and the trend within the industry . 3. The auditor should carefully study the organizational structure of the enterprise including the organizational chart and the administration and procedure manual and keep them in the audit file. 4. The auditor should be familiar with the names and offices of the principal officers to be met during his engagement such as the managing director, financial director, and head of accounts , including their addresses and phone numbers. 5. The auditor should obtain a list of the various offices and factories of the enterprise indicating their sizes, the nature of activities carried out , a description of how audit staff can get to each location.
6. He should also familiarize himself with the details of statutory and professional regulations affecting the business of the enterprise. 7. He should also thoroughly acquaint himself with the accounting and internal control procedures as well as the financial statements of the enterprise. 8. He should obtain particulars of the articles and memorandum of association or partnership agreement or trust-deeds or any decrees/edicts or any similar documentation setting out the aims of the enterprise. DEVELOPING AN AUDIT PLAN An audit plan does help the auditor not only to understand the scope of the audit but also facilitate smooth conduct of audit. The auditor should consider the under mentioned matters while developing the overall audit plan: 1. The terms of his engagement and any statutory responsibilities. 2. The nature and timing of reports or other communication. 3. The relevant legal or statutory requirements.
The Term Paper on Accountants And Auditors Work Aircraft Degree
Accountants and Auditors There are 4 types of accountants: Public Accountants, Managerial Accountants, Internal Auditors, and Government Accountants. Public Accountants work for public accounting companies, Managerial Accountants keep track of company's accounts, Internal Auditors check the accuracy of company's accounts and look for evidence of theft, and Government Accountants and Auditors keep ...
4. The accounting policies adopted by the client and changes therein. The effect of the new accounting or auditing pronouncements on the audit.
5. The identification of significant audit areas.
6. The conditions requiring special attention. .eg , possibility of material error or fraud, or transactions with outsiders in whom directors are interested. 7. The degree of reliance, the auditor should place on accounting system and internal control prevailing in the organization. 8. The possible rotation of emphasis on specific audit areas. 9. The nature and extent of audit evidence to be obtained 10. The work of internal auditors and external auditors and their extent of their involvement, if any in the audit. 11. The involvement of other auditors in the audit of subsidiary branches of the client. 12. The involvement of experts.
13. The allocation of work between joint auditors and the procedures for its control and review. 14. Establishing and coordinating staffing requirements. The overall plan should be documented as well. The form and extent of documentation vary depending upon the size and complexity of the audit work. PRELIMINARY PREPARATIONS BY THE AUDITOR
Preparation before audit refers to preliminary preparation by the auditor with regards to auditing. An auditor must prepare well before he actually conducts an audit. Upon being appointed an auditor for the first time , the auditor will have to plan out the steps he would take before commencing the actual work. Before commencing a new work an auditor has to undergo seven stages, 1. The agreement with the client.
2. Ascertain the scope of the audit work.
3. Knowledge of the client’s business.
4. Information about the client’s staff.
5. Ascertain technical details.
6. Instructions to and information from client.
The Essay on Nature of Auditing and the Public Accounting Profession
1. Auditing neither creates goods nor adds utility to existing goods and therefore does not add value to business. Auditing exists only because it has been legally mandated. Auditing exists because it is needed by the company. It is beneficial to users who need assurance if their financial statements reflect economic conditions that occurred in a period. Without reliable information, companies ...
