To conduct any audit is set some time limit. It is therefore very important the correct organization of the audit. She always starts with planning, which is performed to correctly determine the entire scope of work, evaluation of their cost and installation deadlines. Planning the audit involves the optimal tactics and strategies. In most cases it is based on three principles: optimality, continuity and completeness.
The Principle of completeness means that all stages of audits, from preliminary to final and procedures should be consistent and interrelated.
The Principle of continuity suggests that the audit team gets involved task, given the linkages between planning stages and timeframes for the related business entities.
The Principle of optimality provides a variety of planning, which allows you to choose the best program audit.
When planning the audit, prepared working paper on the study of the financial activity of the client, a letter of consent to perform the audit, the contract on its carrying out, the General plan and program. First and foremost, the auditor should visit the client to determine the audit objectives and clarify the desired results. In the process of negotiations the representative of the audited entity agrees to provide information for the assessment of its economic activities. The person conducting the inspection must produce a document that will form the basis of an assessment of labor costs and their cost. This may be the most common form a list of questions and tests, which is filled by the person ordering the test. Pre-planning of the audit involves a survey to determine the integrity and solvency of the client.
The Obtained data help to determine whether there is a need to attract experts and specialists (technologists, lawyers, engineers) for advice on some of the difficult issues that arise in the verification process. Also determined the feasibility of control. Then the customer is sent a letter indicating that the auditor agrees to do the work. Then between the two parties is a contract where negotiated and agreed all the conditions of execution of works and their possible changes. It is important that this document is signed just before the preparation of the General plan and the test plan, otherwise unexpected failure of customer can cause large losses from the auditing company.
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The implementation of the common plan and programme – the most time-consuming phase, the final planning of the audit. In the program is determined not only by the volume of forthcoming works, but also the methods, techniques, and analytical procedures for reference checks and terms of their execution. Developing such a document, checking on the face highlights areas important for auditing as well as financial-economic operations at the enterprise customer, which are irrelevant. While important sections of financial statements are tested more extensively and in detail, and allow a minor to only a partial audit sample.
Despite the fact that the planning of the audit involves advance preparation of the program, it still may be slightly changed and modified during execution of the work. The reason is that in the course of the audit procedures, you may encounter unexpected results. In this case, it should document the reasons for the changes.
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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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