0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What color pen should used by an external auditor in a company while auditing?
red
How do i construct a letter to terminate an external auditor's appointment?
The writing of a letter to terminate an external auditor's appointment should start with your authority to do so if it is not clear who you are to the auditor. The letter should thank the person for their service. Finally, the letter should end with the expected end date.
What color pen should used by an internal auditor in a company while auditing?
green colour
What is meant by an auditing independent mental attitude?
In auditing, keeping a independent mental attitude involves "professional skepticism". While an auditor should not assume that everything management says is a lie, he also shouldn't assume that everthing management tells him can be relied upon as true without any need for independent verification by the auditor. An auditor often deals with management, but his duty is not to the audited company's management, but rather to the directors, owners and potential future owners of a company, who will rely on the audited financial statements to make decisions about investment in the audited company.
What should be the consequences for the auditor if he is proved to be negligent in carrying out his responsibilities?
no i cant
What color pen should used by an external auditor in a company while auditing?
red
How do i construct a letter to terminate an external auditor's appointment?
The writing of a letter to terminate an external auditor's appointment should start with your authority to do so if it is not clear who you are to the auditor. The letter should thank the person for their service. Finally, the letter should end with the expected end date.
Why an external auditor should be concerned over internal control?
An external auditor should be concerned over internal control because it helps ensure the accuracy and reliability of the financial statements. Weak internal controls increase the risk of errors or fraud going undetected, which could lead to misstated financial information. Assessing internal controls is essential for the auditor to determine the extent of their reliance on the company's systems and processes.
What color pen should used by an internal auditor in a company while auditing?
green colour
What are the qualities an individual should posses in order to be an auditor of a public limited company?
Assuming the individual is already employed by an Audit Firm, has the technical expertise in the company's line of business, has adequate training and supervision, etc..... they should be very attentive to details, very analytical, sharp witted, etc. Auditing is a VERY tedious, boring and complicated job.... it has a very high burnout rate.
Stakeholder should be internal or external?
Generally, stakeholders are external. If an employee is at the same time a stakeholder of the company he works for, then he is both internal and external.
What should the auditor consider before accepting the audit of a not-for-profit organisation?
I THINK the auditor consider should be accept
What should a government auditor use?
The auditor should use professional judgment in planning and performing all audits
If an external conpany sends to your company compensation for your employee for attending the external companies workshop. I this a pass through with no taxes taken or should my company withhold taxes?
no
List five recommendation that have been made recenlty to strengthen the independent audit function?
A public company auditor, in order to be independent, should not audit its own work (as it would if it provided internal audit outsourcing services, financial information systems design, appraisal or valuation services, actuarial services, or bookkeeping services to an audit client).A public company auditor should not function as part of management or as an employee of the audit client (as it would if it provided human resources services such as recruiting, hiring, and designing compensation packages for the officers, directors, and managers of an audit client).A public company auditor, to be independent, should not act as an advocate of its audit client (as it would if it provided legal and expert services to an audit client in judicial or regulatory proceedings).A public company auditor should not be a promoter of the company's stock or other financial interests (as it would be if it served as a broker-dealer, investment adviser, or investment banker for the company).
What three Specific Job Positions do you target from our company?
When you are asked for three specific job positions that you target from a company, you should be specific. They should somewhat related to each other like an accountant, auditor or financial manager.
What are the Responsibilities of the external auditor?
External Auditors' Roles and ResponsibilitiesAn external auditor is an independent service provider whose impact can provide significant influence on the organization being audited and its stakeholders. Even though they are not part of the organization, they play a key role in developing internal control. Auditors can comment on weaknesses in the accounting records, systems and controls that they review in the audit. They provide a statistical analysis on the clarity and effectiveness of the accounting policies put in place by the company. They also help management become aware of evidence that may affect future audits. They can give advice management through recommendations in their audit notes or discussions. Constructive suggestions can improve the procedures for documentation more efficient, ethical, or fairly presentable.The roles and processes of an external auditor can vary from country to country. Due to the significant developments of FASB merging with IASB, perhaps soon enough experts from around the world can follow another's work without discrepancies. Until that day, auditors must have knowledge of the particular countries audit procedures as well as the business they are working with. External auditors do not have the benefit of working with the company on an everyday basis. A significant effort must be made to familiarize themselves with the company or the industry. This may be done through extensive training, study of the workings of the industry, to questions made to management about their operations. This is essential for a successful audit review.A cornerstone of the difference between an internal auditor and an external auditor is company-wide independence. An external auditor must have independence. When reviewing a company's financial statements cannot have any close ties with the company. This means no stocks, close relatives with stocks, management positions, etc. This policy was put into place to ensure a total objective review in which influences would not affect the outcome of the audit. Situations of this matter may be obvious; however sometimes there are various shades of gray. When in doubt, speak to a supervisor and use your best judgment! Sometimes it is better to not take the case if the auditor's independence can be compromised.The primary purpose of an audit is to review and verify the company's financial statements to form an opinion about the company's financial statements. They may give a qualified, unqualified, adverse opinion or even a disclaimer. Each one of these opinions can be vital for an organization. These opinions state whether the financial information was justly represented, misleading, or insufficient enough to form an opinion. Stakeholders can be influenced greatly by an audit. It may mean the difference on the company getting a bank loan or for an investor to bring in capital. These statements tell the public if the company is truthful and open with their financial information or if they seem to be hiding something they do not want anyone to see. External auditors are the police and judges of the financial public affairs. The goal is a safe and sound set of financial statements to protect private and public investment.Internal Auditors' Roles and ResponsibilitiesAn internal auditor's job is vital to a company. The desire of an internal audit staff is to look at the overall strategic goals of the company and help them excel in a reliable and ethical manner. They evaluate and improve the company's systems of compliance, control, and risk assessment. With this review, the company can safely carry out its operations with reasonable confidence. Reviews made to internal control and risk management identify areas that need improvement. Recommendations are made to the proper personal to develop better business practices and performances. In these procedures, the storage of information and security is tested for effectiveness. Though the information gathered for financial statements needs to be transparent, the protection of customer sensitive information must be held in the utmost respect of the company. The internal auditor may make suggestions on how to better safeguard this information from being accessed by persons other than necessary personal.An internal auditor must develop a strong understanding of the company it works for. Levels of experience, training, and education help the auditor assess business situations for better evaluation. All auditors must continue their education throughout their career to keep themselves up to date on new and innovative accounting procedures, especially in the years soon to follow. An auditor must also understand their limits. When in doubt, ask questions! An internal auditor should meet with legal counsel to verify compliance with regulations and laws. IT specialist can keep the company current with any safeguards the company can benefit from. They should work with the external auditors to improve auditing practices. Consultants can be useful for the company's future planning. These third parties can be a benefit to any internal auditor. They can provide necessary information to further evaluate the effectiveness and efficiency of the company.Communication is important. There should an open flow of information between the auditor, audit committee, and management. This helps to avoid mistakes and miscommunications. This also considerably improves the auditors fair and objective work quality. With the increased protection for whistleblowers, an open communication can evaluate any allegations of fraud within the company. Fraud may be investigated and brought to justice faster and more cost effective if the information is freely transmitted between the related parties. An internal auditor's primary function is to evaluate and improve the company's finances and accounting procedures to ensure safe and ethical practices are conducted within the regulations of the law and related governances.
