Procedures followed in conducting an audit, Auditing

Assignment Help:

Procedures followed in Conducting an Audit

Procedures generally followed in conducting an audit by more than one firm of accountants and the division of work between them.

All auditors may be liable to the consequences of loss arising from negligence.  Each joint auditor accepts all the obligations of the office of auditor and this can mean that losses flowing from a wrong auditor's report may be recovered from either of both auditors.  Thus a joint auditor might be financially responsible for losses arising as a consequence of the negligence or incompetence of his fellow auditor.

Before accepting a joint office, an auditor must:

1. Consider whether he is prepared to serve jointly with the other auditor.  He may well ask himself if he would take him as a partner.

2. Assure him that adequate review and control of all aspects of the audit can be prepared.

3. Ensure such professional indemnity insurance cover can be acquiring to cover the individual situation.

Several possible arrangements could be made:

1. Each joint auditor could conduct its own audit with its own standard documentation and files.  Leading schedules would need to be photocopied and exchanged.

2. A unified set of documents and files could be produced by both firms.  This may involve some modification of each firm's methods.

3. Each firm could use one standard set of documents and files using the standards of the larger of the two firms.

Whatever the techniques is used, extensive conversation and planning must lead the commencement of any audit work.

The considerations that are likely to dictate the division of work are as:

i.     Expertise: Each firm may have individual expertise as in specific kinds of client, computers etc.

ii.    Geography: The particular place of the firms and their branches must be believed.

iii.   Competence: One of the joint auditors may be particularly competent along with small clients, the other along with large clients.

iv.   Availability and Size of staff.

v.    Cost: Audit costs may be minimised through a particular division of work.

 


Related Discussions:- Procedures followed in conducting an audit

Action if management refuses to provide representations, Action if Manageme...

Action if Management Refuses to provide Representations Whether management rejects to provide a representation which the auditor considers compulsory, this constitutes a scope

Describe the concept of internal control, You have been appointed as an Int...

You have been appointed as an Internal Auditor in an organisation . As part of your duties, you are required to provide training to the staff in the internal audit division. Your f

Show the audit work of the given capital project, In planning the audit wor...

In planning the audit work of the Ministry, the audit staff member collected these details relating to the construction of an office complex. 1. In September 1994, the Ministry

420, Develop an audit program to identify and reduce potential fraud using ...

Develop an audit program to identify and reduce potential fraud using ACL.

Writing an assignment, am happy to pay someone to do my acc assignment whic...

am happy to pay someone to do my acc assignment which is more auditing one

.audits, distinguish between early audits and modern audits

distinguish between early audits and modern audits

Requirements of the companies act, Requirements of the Companies Act H...

Requirements of the Companies Act Here the seventh schedule to the Companies Act gives the matters which must be expressly stated in the AUDITOR'S REPORT 1. Where they have

Audit approach, Audit Approach The auditor: 1) Must get the coopera...

Audit Approach The auditor: 1) Must get the cooperation of the client, as simply the client can authorise third parties that communicate along with the auditor. 2) Choos

Balance sheet and income statement, OBJECTIVES To apply certain st...

OBJECTIVES To apply certain steps in the audit planning process, with emphasis on risk identification and audit response (strategy) thereto. To provide you with the exp

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd