logo

(PDF) A Critical Evaluation of Current Events in Auditing

   

Added on  2021-02-19

10 Pages3104 Words36 Views
CRITICAL EVALUATIONOF CURRENT EVENTS INAUDITING
(PDF) A Critical Evaluation of Current Events in Auditing_1
TABLE OF CONTENTS.........................................................................................................................................................2INTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1Procedures to be performed by Dyke & Co. before accepting FHL as client.............................1Information to sought and procedures to perform during risk assessment and planning phase..3Key business risk faced by FHL, consequences and the measures for mitigating risks..............4Test of controls for obtaining the audit evidences related to the accounts receivable.................5Current issues over the poor audit work and impact on organisations........................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
(PDF) A Critical Evaluation of Current Events in Auditing_2
INTRODUCTIONAuditing refers to critical inspection and evaluation of books of accounts. Inspection andaudit is done by professional auditor. It ensures that companies are maintaining all the regulatoryframeworks for recording the transactions. The auditing standards lay down the procedures forevaluation of different events and transactions carried out in an organisation by auditor. Auditoris responsible for identifying the accuracy and fairness of the financial statements prepared bycompany. Report will reveal about nature scope of internal control processes and auditing. It willgive an understanding and evaluation of accounting and internal control risks and systems. Theimportance of audit evidence, audit procedures and critically reviewing the audit risks that canaffect the organisation. Main purpose of auditing is to ensure that financial statement oforganisation represents true and fair of the financial position and is complying with all thereporting framework of accounts.MAIN BODYProcedures to be performed by Dyke & Co. before accepting FHL as clientAs per IFAC code of ethics for professional accountants before accepting relationship witnew client, professional auditor in practice is required to ensure that accepting an auditengagement will not create threat in complying with fundamental principles. Firm have toinvestigate about potential client, owners & activities of business for evaluating integrity ofbusiness that can create an unacceptable risk. Investigative procedures are known as customerdue diligence procedures(Hines and et.al., 2015). It is essential for audit firm to assess integrityof management and principle of the prospective client. Companies with negative reputationshould not be accepted by company. Preliminary ConferencePreliminary conference should be held between FHL and Dyke after showing interest in auditfirm. The factors that can be discussed in the meeting depends upon integrity of client. Firstly thecapabilities of firm, it competency in the industry should be discussed by firm to FHL(Hagman,2016). Reason for the change of auditor are to be asked by company. Firm should discuss thestructure it will follow for performing the audit of company. Firm should inform client thatcommunication with predecessor will be made and evaluation of the business firm will be donebefor accepting the audit engagement. Pre acceptance procedure 1
(PDF) A Critical Evaluation of Current Events in Auditing_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Critical Evaluation of Current Events in Auditing
|10
|3024
|84

Auditing and Accounting
|6
|979
|431

Audit Expectation-Performance Gap: Components and Impacts on Stakeholders
|9
|2535
|242

Acceptance Decision on ProSalam Manufacturing Bhd
|15
|3630
|126

Auditing and Assurance
|22
|4990
|418

Issues in Auditing Practices
|17
|2550
|141