Strategic Auditing Presentation: Postgraduate Diploma in Finance

This presentation on strategic auditing explores the core concepts of the auditing process. It begins with an introduction to auditing and its role in verifying financial statements. The presentation then delves into the identification and analysis of audit strategies, specifically examining the audit process, including gathering documents, preparing audit plans, meeting with superiors, conducting fieldwork, drafting reports, and holding closing meetings. The effectiveness of the audit monitoring process is evaluated, highlighting its importance in identifying problem areas. Audit risks, encompassing inherent, control, and detection risks, are discussed, along with measures to minimize these risks, such as segregation of duties and monitoring key processes. The presentation also addresses current developments in auditing, including information technology, advanced monitoring, and audit practices, concluding that auditing is vital for organizations to demonstrate a fair and true financial position.

Strategic Auditing
Part B

Table of content
• Introduction
 Identification and analysis of audit strategy
 Evaluation of effectiveness of audit monitoring process
 Audit risks
 Evaluation of appropriate measures to minimize risks
 Current developments in auditing
 Assessment of current developments
• Conclusion
• References

Introduction
Auditing function is the process which includes investigation and checking
of adherence of financial statements and reports. In this presentation,
auditing strategy is discussed along with effectiveness of auditing process
used by Tesco PLC. The main aim of this presentation is to build an
understanding about function of auditing by determining various risks
involved in this process along with appropriate measures of minimise those
risks.

Identification and analysis of audit strategy
Audit is a process of investigation and checking reliability of financial
statements of an organisation. This process includes various steps and
stages:
 Gathering documents
 Preparing an audit plan
 Meeting with organisational superiors
 Conducting fieldwork
 Drafting a report
 Conducting a closing meeting

Continue...
This audit is referred as a non compulsory audit which is not
required to be conducted under any law or statute. This
audit is a process of verification of an organizational
business activities.

Evaluation of effectiveness of audit
monitoring process
Audit monitoring process is a practice which is conducted internally by the
management of an organisation. Under this process, internal auditor which is
related with the company conducts audit by continuous monitoring over
activities and operations of the organisation. This process is considered as
the most important aspect of an organisation as it helps in identification of
problem areas.

Audit risks
Audit risk is the risk which occurs due to material misstatement. These risks are
ascertained by auditor in order to identify the accounts which are at highest risk
of material misstatement. There are three types of risk which are mentioned
below:
 Inherent risk
 Control risk
 Detection risk

Evaluation of appropriate measures to
minimize risks
There are various mitigation methods which can help an company to evade
their risks which occurs at the course of auditing. Inherent, detection and
control risk can be minimized by following few measures such as:
 Segregation of duties
 Monitoring key processes and controls
 Addressing all concerns

Current developments in auditing
Auditing in current scenario is a major aspect to be considered due to
which there are various developments are produced which helps in
developing the process of auditing. Some of these developments can
include:
 Information technology
 Advanced monitoring and controls
 Audit practices
 Advanced qualifications

Assessment of current developments
Current developments in the field of auditing can include various
aspects which are mentioned above. These aspects and their
assessment are mentioned below:
Information technology: Boards and audit committees will need to be
appropriately resourced and sufficiently trained in order to understand
the impact of technology on financial reporting processes.

CONCLUSION
In this prsentation, it has been concluded that auditing is important for every
organisation as it shows the fair and true value of business operation and
financial position of company. The main aim of this project is to compare
and contrast historical and current audit practice and regulatory
environment. Evaluate the rules for professional conduct and importance of
legal and professional requirements for auditor.

REFERENCES
 Williams, D., Grinnall, A. and Burnett, S.M., 2013. The strategic role of
knowledge auditing and mapping: an organisational case study.
 Foxcroft, L. and De Jager, H., 2014. Focus of IA departments on strategic risks of
listed companies. Southern African Journal of Accountability and Auditing
Research. 16(1). pp.45-50.
 Shi-hong, R.A.O., 2012. On Risk-Oriented Auditing in Process of Oilfield-Made
Products Sales [J]. Journal of Jianghan Petroleum University of Staff and Workers. 4.
p.036.