Describe the steps of an audit ?

Answers were Sorted based on User's Feedback



Describe the steps of an audit ?..

Answer / gration

The audit is a complex engagement that has many steps,
starting off with a pre-audit where the audit team performs
an assessment of the level of risk involved. Once they have
a clear understanding, the next step is to plan the audit.

The planning process involves brainstorming and sharing
ideas among the audit members. It also involves
understanding the client's business environment, identifying
the sources of information, and developing the audit strategy.

Is This Answer Correct ?    11 Yes 1 No

Describe the steps of an audit ?..

Answer / gration

10 STEPS OF AN AUDIT (Describe this )

1.Notification
2.Planning
3.Opening Meeting
4.Fieldwork
5.Communication
6.Draft Audit
7.Management Response
8.Ending the Auditing Process-Final Meeting
9.Report Distribution
10.Feedback

Is This Answer Correct ?    6 Yes 0 No

Describe the steps of an audit ?..

Answer / gration

The 10 steps of the audit process begins with notification.
The notification process alerts the party to be audited of
the date and time of the process. The notification also will
list the documents that the order wishes to review in order
to understand the organization of the company. The next
step, planning, is the steps the auditor takes, before the
audit, to identify key areas of risk and areas of concern.
This step is usually accomplished in a series of meetings
with auditing staff. This leads up to the opening meeting
between the auditing staff and senior management of the
auditing target as well as administrative staff. The
auditors will describe the process they will undertake.
Management will describe areas of concern to them and the
schedule of the employees that must be consulted. The next
step, fieldwork, begins after the results of the meeting are
used to adjust the final audit plans. Employees are notified
of the audit, schedules are drawn up regarding the
activities of the audit staff, and initial investigation is
begun after learning of business procedures, interviewing
key staff, testing current business practices by sampling,
reviewing the law and testing internal rules and practices
for reasonableness.

Communication is the next step. The audit team should
consistently be in contact with the corporate auditor to
clarify processes, gain access to documents and clarify
procedures. At the completion of the audit, the next step,
the draft audit, is prepared. The draft audit will detail
what was done and what was found, a distribution list of
parties to receive preliminary results, and a list of
concerns. The draft is given to management to review, edit
and suggest changes, probe areas of concern and correct
errors. Upon making final corrections, the report is given
to management for the seventh step, the management response.
Management is requested to answer the report by stating
whether they agree with the problems cited, the plan to
correct noted problem and the expected date by which all
issues will have been addressed.

The final meeting is designed to close loose ends, discuss
the management response and address the scope of the audit.
The ninth step is the report distribution, where the final
audit report is sent to appropriate officials inside and
outside the audit area. The last step is the audit feedback
whereby the audited company implements the recommended
changes and the auditors review and test the quality,
adherence and effects of the adopted changes. This continues
until all issues are adopted and the next audit cycle begins.

Is This Answer Correct ?    5 Yes 0 No

Post New Answer

More Audit Interview Questions

Define decommission liability?

0 Answers  


NAME OF FOUR TYPES OF ERRORS?

5 Answers   TATA,


1. When is GRN raised? 2. what is the purpose of matching open PO listing against GRIR account?

3 Answers  


What is the Difference between Current Assets and Fixed Assets and how would you classified it

19 Answers   GET Engineering Construction,


Where do you see yourself in 5 years time?

2 Answers   Ernst Young,






Had I imported two items one is custom duty free and another is with custom duty. Whether I can sell the custom duty free item with the custom duty or not.

1 Answers  


i have to finalize a mineral water co. for the year 2014-15 and i want to know that what will be rate of excise duty on sale of mineral water.

0 Answers  


what is accounting

2 Answers   Fidelity,


secretarial audit

6 Answers  


HOUW MANYTYPES OF STOCK MAINTEIN BY STORE KEEPER WE ARE A MANUFACTURING CO WE SEND SOME PARTS TO PARTY FOR JOB WORKS ( EXP ) TILL 31ST MARCH STOCK ARE NOT RETURN TO US. CAN I CALCULATE THIS PARTS FOR STOCK CALCULATION FOR STOCK CERTIFICATE FOR THE PURPOSE OF ANUAL VAT RETUEN FILE IN SALES TAX DEPARTMENT

2 Answers   Real Estate,


What the meaning of Computer Auditing.

3 Answers   emc2,


Why do you choose Auditing ?

0 Answers   Ernst Young,


Categories