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What is audit client screening and what are audit client screening procedures?
Wiki User
∙ 9y ago
During an audit, a client may be screened before the actual audit to inform them of what will take place. This is a time to give them information on what to bring and answer questions.
Wiki User
∙ 9y ago
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What is the Difference between HR audit And Financial Audit?
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
What is audit procedures?
Audit procedure is the process followed while auditing an entity which may include:Confirm the audit assignmentComplete appropriate planningExecute actual internal audit workDevelop a report
An audit team's responsibility would not include?
Designing client's internal controls
How the acceptance of large and high risk audit clients for relatively high audit fees may threaten an audit firm's de facto and perceived independence?
The professional judgment of auditors may be compromised when their firm is overly dependent on one or a few large clients. Auditors, even those at the lower levels of a CPA firm, are likely cognizant of the economic impact that losing such a client would have on their firm and possibly on their own professional careers. This awareness alone may cause auditors to be more "flexible" during such engagements. This problem may be compounded when a large client poses a relatively high audit risk since there is a greater likelihood that problematic issues requiring the exercise of professional judgment will arise on such an engagement. Criticism of the auditing profession has sensitized investors, creditors, and other third-party financial statement users to the paradoxical nature of audit independence. Third parties often find it difficult to accept that auditors can maintain an objective, professional point of view when the client retains and compensates the audit firm. This skepticism is likely heightened in circumstances such as those that existed in the Phoenix audit market in 1985. In a highly competitive audit market, the acceptance of a huge client, such as Lincoln, may cause third parties to assume that the given audit firm will resolve key accounting and auditing issues in the client's favor to ensure retention of the client.
Which party owns audit workpapers?
The audit work papers are owned by the auditors, they are designated as the owners of the working papers in an Audit firm in UAE. These papers are confidential between auditor and the client. You can get more information about Auditors or Auditing firm in Dubai at " www . flyingcolourtax . com "
What are analytical procedures?
Analytical procedures are "one of many financial audit processes which help an auditor understand the client's business and changes in the business, and to identify potential risk areas to plan other audit procedures." So essentially these are the procedures that an auditor goes through to look at risks within the business.
The date of the CPA's opinion on the financial statements of his client is is?
the date of the completion of all important audit procedures.(Field work completed).
How long will client machine audit logs be maintained for?
Client machine's audit logs will be maintained for at least:
How long will Client machine audit logs be maintained?
Client machine's audit logs will be maintained for at least:
What is work through test in audit test?
In audit there is no such thing as a work through test. What exists is a walk through test. This test- Walk through test is a test for the auditors to determine the reliability of the client's accounting and internal control procedures.
What is the difference between Generally Accepted Auditing Standards and auditing procedures?
In the US, Generally Accepted Auditing Standards (US GAAS) are 10 principles developed by the American Society of Certified Public Accountants (AICPA).These standards provide the criteria (ground rules) for conducting every audit in such a way that the CPA conducting the audit is able to properly express an opinion on a client's financial statements and give reasonable assurance to users of those statements about whether (or not) the statements fairly present the company's financial condition in all material respects.Among other things, GAAS requires that an auditor must: have adequate technical training and proficiency, exercise due professional care, and maintain independence, in order to properly perform any audit. There are additional US GAAS standards that apply to Fieldwork (the actual planning and performance of the audit) and Reporting (statements that the auditor must include in any report the auditor issues about the audited financial statements). A more detailed statement of US GAAS principles is readily available online.Think of GAAS as the "competence/thoroughness/quality" standards that apply to every financial statement audit. For publicly-owned companies, US GAAS also includes any auditing standards issued by the SEC.Audit procedures, however, are the individual steps, the nuts-and-bolts procedures and tests used to verify account balances and other management assertions during a given audit. These procedures are planned by the auditor and outlined in an audit program, which gives the audit team a "roadmap" to follow for this particular audit.Although GAAS requires very few specific audit procedures (or else documented justification by the CPA of why any required procedure was omitted, and of what procedure was done instead to make up for it), in general, GAAS doesn't concern itself with testing what is on a given client's financial statements.That is where auditing procedures (aka audit testing procedures) come into play. Auditing procedures are those tests and procedures used to test this client's actual account balances, and/or to gain knowledge of and test the design and effectiveness of this client's internal control.In any given audit engagement, it is generally up to the auditor's professional judgment to select the most appropriate auditing procedures in order to reasonable satisfy himself that the client's financial statements fairly present the client's true financial condition. The auditor must always follow GAAS, but he has a good deal of latitude in choosing which auditing procedures he will perform.One example of an auditing procedure is a confirmationrequested from an outside party; this is used to see whether the client's records match those of an outside third party. For example, the auditor might send a confirmation form to the client's customers, asking them to verify the amounts the client says they owe. This tests the accuracy of the client's reported Accounts Receivable, and is also a way to test for possible fictitious sales reported by the client on its financial statements.A second (and very important) audit procedure is to observe the client's inventory count at the financial statement year-end date. This procedure is used to test for the existence of the inventory, and the reasonableness of the value at which the client has reported it.Some audit procedures are designed to determine those areas in which the client has a well-designed and effective internal control system over the recording of financial information in its accounting records (and therefore in its financial statements). Other audit procedures are designed to directly test the amounts on the financial statements (account balances). Still other procedures involve ratio analysis and other analytical procedures to identify unusual relationships between related account balances and reasonableness of estimated amounts. Some procedures can accomplish more than objective.
When should an audit engagement letter be issued to an audit client?
It should be issued during the planning stages of the audit
What is the Difference between HR audit And Financial Audit?
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
What is remunerated?
The audit fee payed by client to the auditor.
What procedures need to be done after a safety audit is complete?
No
What is auditors remuneration?
The audit fee payed by client to the auditor.
How do you audit share based payments and special purposes entities?
examples of audit procedures for share based options
