Audit planning steps pdf

Dealing with auditors can be a pain because it does require tedious audit planning steps pdf on the part of those being audited. That might seem unfair, but in all actuality, the auditor has just about as much work to do.

The difference is that the auditor has a lot of pre-work research and the audited has a lot of work to do during the audit. You of course have to know how to audit to be an auditor, but once you learn the basics, actually performing audit work as an auditor is fairly simple but very rewarding. Confirm that you are suitable for performing the audit. It needs to be certain that any auditor is absolutely objective in their assessment. Therefore, it is required that the auditor be completely independent from the company. This means that the auditor can have no relationship with the company outside of the audit.

Not work for the company in any other capacity. Be rotated regularly during the audit process to get fresh opinions on the material. Assess the size of the audit. Before entering into the audit process, the auditor or auditing team should analyze the company and assess the scope of the work. This includes an estimate of how many team members should work on the audit and how long it will take.

Additionally, it includes an assessment of any special or work-intensive investigations that must be made during the audit. Figuring this out can help the auditor assemble a team, if necessary, and can provide the company being audited with a timeframe for the process. Before beginning the audit, the auditor should use their past experience and industry knowledge to attempt to predict areas where the company may have misstated financial information. This will require an in-depth knowledge of both the company and its current operating environment. Obviously, this is a very subjective assessment, so the auditor will have to rely on their own judgment. Once preliminary assessments have been made, you will need to create a plan to carry out the audit.