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Audit - Coggle Diagram
Audit
Criteria for financial audit classification
Legal
Statutory audits
Audits of financial statements
Partnerships
Medium and large corporations
Specific industries
Audits of consolidated financial statements
Corporations
Voluntary audits
Determination of financial position
Audit of management
Nature
Internal audits
Ensuring the effectiveness of internal controls
Dentifying any risks or weaknesses
Meets with
The senior officer directly responsible for the unit under review
Any staff members s/he wishes to include.
Improving the effectiveness and efficiency of the organization's operations
Broader
External audits
Ensuring financial reporting accuracy and compliance with regulations
Narrower
Dispute audits
Unrestricted audits
Objective of audit
Audits to ensure compliance with the law
Audits to check economic viability and management audits
Audits to discover irregularities and fraud
Entity subject to audit
Industrial companies
Banks
Insurance companies
Timing of audit
Periodic audits
One-time audits
Audit stages
Planning
Notifying the client of the audit
Аnnouncement letter from the Internal Audit Director
The scope and objectives of the audit
The auditor(s) assigned to the project
Discussing the scope and objectives
Collection of information
Evaluate existing controls
Planning the next steps
Fieldwork
Designing Fieldwork Tests
Preliminary review findings
Understanding the Business
Assessing Risks
Determining the Audit Scope
Developing an Audit Plan
Identified risks and weak controls
Audit program objectives
Audit Report
Drafts of the final report
Pre-Release Response
Response after issuance
Providing a method for resolving the issues and an implementation timetable.
Accepting the risks and sending a copy of the response to all recipients of the final report
Management letter
A description of the deficiencies
Recommendations for improving operating procedures
A description of adverse changes
In the assets and liabilities
The financial position
Income of the company
Losses that significantly affected the results for the year
Follow-up Review
Internal Audit
Re-audit during the year
Review of client response letter
Verification of corrective actions
Follow-up report
Solid working relationship
Clear and continuing communication.
Rules for audits
UK
“true and fair view”
Providing audited annual accounts
US
“fair presentation” of the company’s [corporation’s] financial position
Audited accounts are only registered with the Securities and Exchange Commission
Disruption to ongoing operations
Intensive data extraction
Extensive interviews
Suspensions of operations
Internal Audit’s self-evaluation program
Feedback
Making changes to procedures