SMART auditing. - Document - Gale Academic OneFile (2024)

FAQs

How do you answer audit questions? ›

Honesty, sincerity, and straightforwardness should be the touchstones of your responses. An auditor is looking for the truth. A guess, even if it is an educated guess, is not the truth.

If the financial statements, including accompanying notes, fail to disclose information that is required by generally accepted accounting principles, the auditor should express a qualified or adverse opinion because of the departure from those principles and should provide the information in the report, if practicable, ...

Audit documentation also facilitates the planning, performance, and supervision of the engagement, and is the basis for the review of the quality of the work because it provides the reviewer with written documentation of the evidence supporting the auditor's significant conclusions.

A common audit finding is the absence of or inadequate documentation to support financial transactions and decision-making processes. Insufficient documentation makes it challenging to provide evidence of compliance with regulatory requirements and can raise doubts about the legitimacy of financial activities.

3-6 An unqualified report may be issued under the following five circ*mstances: All statements—balance sheet, income statement, statement of retained earnings, and statement of cash flows—are included in the financial statements. The three general standards have been followed in all respects on the engagement.

Performance aspects include: economy, efficiency, effectiveness, compliance, accuracy, completeness, and timeliness. Here is a tricked out audit objective that includes a finite subject mat- ter (seven performance measures), a performance aspect (accuracy), and documented criteria (Comptroller's Guidance).

Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.

What is the difference between audit evidence and audit documentation? ›

In an audit, the auditor must obtain sufficient appropriate audit evidence in order to support its conclusions and opinion on the financial statements. The audit documentation prepared and obtained during the audit will serve as a record of the work done in the audit working papers.

Poor documentation in projects can have severe consequences, including communication breakdowns, legal risks, delays, cost overruns, compromised quality, and reputational damage.

Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor's opinion is based.

An audit is the review or inspection of a company or individual's accounts by an independent body. Auditors may be hired internally by the company or work for an external third-party firm. Almost all companies conduct a yearly audit of their financial statements.

To solve this problem, you need to identify the relevant standards, regulations, or policies that apply to the auditee and their industry, and assess their compliance with them. You should also perform substantive tests and analytical procedures to detect any significant deviations or anomalies in the financial data.

All audit clients are required to provide a written response to audit findings. The response represents management's plan for correcting or improving the finding situation. All responses are included in the final audit report that is distributed to senior management, the Board of Governors, and the external auditors.