Audit test slideshare. Completeness testing.

Audit test slideshare Auditor is always fact finder and not fault finder. The Latin meaning of the word 'auditor' was a 'hearer or listener' because in Rome auditors heard taxpayers. Requirements of ISAs Local Auditing Standards Relevant professional bodies 17. Introduction Sampling when used in an audit is to provide a reasonable basis for the auditor to draw conclusions about the population from which the sample is selected. . 5 Audit Procedures to be Used When Auditing Trade Payable Audit Procedures Audit Assertions 1 Obtain an aging listing of trade payables (creditors) balances 2 Test 10. There are difference in the way these methods can be applied depending on the type of audit. Obtain an Understanding With the Client ISA210 requires that auditors must document their understanding of an engagement in the audit files, including the engagement’s objectives, the responsibility of the auditor & management, and the engagement’s limitations Engagement Letter (refer pp. Auditing through the computer involves making full use of the computer to evaluate internal controls and determine audit procedures. Risk assessment is carried out in the form of various interviews, Purpose of External Audit:- Confidence in the partnership arrangement Ensuring that requirements are understood Enabling reduction of in-house QC testing of starting materials Reducing the risk of failure Carried Out by a company on its vendors or sub contractors No legal requirement for to conduct audit External auditors have experience of GMP and as well as B. DOCUMENTS RELATED TO FINISHED PRODUCT RELEASE • Laboratory investigation and report form • Finished good cards • Stability Data • Master document Change control form • Retention sample log book • Test sample log book • QA inspection Sheet • Finished Product specification& test report • Calibration policies and related reports • Reference The agenda outlines types of audits like compliance, operational and risk-based audits. • During the audit it is usual to walk through parts of the facility to observe the operation at first hand, to gather information, to assess the cleanliness and condition of facilities and the risk of potential 6. Audit Tools and Techniques The collection of accurate and comprehensive data is one of the key factors for an effective audit. Routine checking The 2. 4 Overview Of COBIT What is the purpose of CobiT? To provide management and business process owners with an Information Technology (IT) governance model that helps in understanding and managing the risks associated with IT. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, 3. Program test of control siklus penjualan menurut Arens, dkk yang diterjemahkan oleh Amir Abadi Yusuf (2003;401) adalah sebagai berikut : 1. * In today’s global health industry organizations or service providers are required to demonstrate that they have adequate financial controls and safeguard when they Types of Audit Tests for the Acquisition and Payment Cycle Accounts Payable Payments Expenses Audited by TOC, STOT, and AP Audited by TOC, STOT, and AP Ending balance Audited by AP and TDB TOC + STOT + AP + TDB Cash in Bank Acquisition Expenses Ending balance Audited by AP = Sufficient appropriate evidence per GAAS ©2008 Prentice 10. com) Page 4 In increases investor’s, creditors’ confidence in the business Q. www Procurement Audit Execution - Audit Evidence Audit Evidence •This is the information to support conclusions in audit report •Auditors rely on documentary evidence more than other types of evidence •Auditors must obtain sufficient and appropriate evidence which can be in the form of tests of controls or substantive procedures ISA 500 states that: “The auditor 4. Read less If the auditor plans to rely on controls relating to an assertion but the controls that the auditor tests are ineffective because of control deficiencies, the auditor should: 1. Ancient China, Greece and Rome. ” www. com for presentations of all chapters. • Electric Supply Companies • Government This is a theoretical presentation describes the history of audit and assurance, definition, process of auditing, objectives, responsibilities, expectation gap, audit evidence and how to report the audit paper. Advantage of audit 8 If the accounts have been prepared on a uniform basis , account of one year can be compared with other years if there is any discrepancy ,the cause may be enquired into. correctly chosen sample was not representative of the population). Learning Objective 1. INTRODUCTION • Front office regularly reviews & verifies accounts • Audit is the daily review of guest account • To ensure accuracy of accounting system • Guest account & 3. The procedures required to conduct an audit in accordance with ISAs or applicable local auditing standards should be determined by the auditor. Depending on the results of this test, auditors may choose to rely upon a client's system of controls as part of their auditing activities. there are questions about the integrity of management d . Modern auditing dates to beginning of the modern corporation Audit Test & Audit Sampling. Studentof DBA,IIUC Payroll system A listof a company’semployeesandthe amountof moneytheyare to be paid. . , “Risk Management Is Where the Money Is” (1998) Andrew Jaquith, “ Risk Management Is Where The Confusion Is “ (2007) Why audit? Auditing is part of a quality control and risk management process Auditors must be independent External Auditors hired to present an independent vision and evaluation Internal Auditors integrating a separate AUDIT SAMPLING. • Results from test run compared to predetermined expectations to evaluate application logic and controls. The objective of internal auditing is to assist members of the organization in the effective discharge of their responsibilities. • Test data includes both valid and invalid transactions. 4 Generally a firm is engaged for an audit but may also be engaged by management to provide additional non-statutory and non-assurance services. 35 23. According to COSO, an effective accounting system performs all of the following except a . Audits permit timely correction of potential 4. IT Audit • The aim of IT audits conducted by Internal Audit is to test relevant system structures and processes for their compliance with applicable policies, guidelines and standards. Accept the client 2. Audit slide - Download as a PDF or view online for free. It also discusses developing an audit plan, evaluating internal controls, testing controls related to purchasing and revenue, audit sampling techniques, and recommendations for the audit. 3. Evidence obtained indirectly. Internal auditors should have no direct operational SlideTeam added 1272 new products (e. 8 EISA Audit Approach – With Attestation •Other audit procedures •Financial statements •Completion No / Limited controls comfort Significant controls comfort Other audit evidence Mainly Mainly tests of details substantive analytical procedures Audit Comfort Cycle Broader and deeper assessment of COSO controls over financial reporting, including 10. Revise the control risk assessment and modify the planned substantive procedures as necessary. , and the nature and sources of 5. • Together, these tests provide essential insights into the operational health of a company’s internal controls, playing a pivotal role in maintaining compliance and integrity in 4. Finally, it outlines the primary substantive audit procedures that would be used, such as reconciling subsidiary ledgers to the general ledger, confirming receivables, and analyzing allowance accounts. Evidence obtained from multiple internal inquiries. 38. The Fundamental Auditing Principles explain that in performing an audit, public sector auditors understand and evaluate the reliability of internal control (ISSAI 300, 3. Likewise, audit procedures are performed in order to test various audit assertions related to different class of transactions and account balances. The Institute of Cost and 2. Which of the following management assertions is an auditor most likely testing if the audit objective states that all inventory on hand is reflected in the ending inventory balance? A. NATURE: REVENUE – exchange of goods and services with customers RECEIPT – collection of Financing Revenue revenue in cash and and Conversion Receipt 3. Reporting documents the audit findings and conclusions. lifein01. Audit & Assurance Syed M Hoq, ACCA (syedmhoq@gmail. Tools discussed include an audit tracker, control testing, and preparing audit reports and presentations. Reduces the Initiative of Efficient Staff: – A program reduces the initiatives of efficient and competent staff. Impact on Time Requirements automation of standard audit test work via macros written in IDEAScript - fuzzy matching - keyword searches - tests of controls less time with data cleaning and testing setup, more time spent analyzing results Python is a recent IDEA add-on that will provide new macro opportunities 5 5. 10. txt) or view presentation slides online. SAMPLING AND NON-SAMPLING RISKS • Sampling risk: the probability that the auditor has reached an incorrect conclusion because audit sampling was used rather than 100% examination (i. Auditing: Performing the Audit: • The audit should begin with an opening meeting to introduce auditor(s); review scope and objectives and agree the agenda and timetable. Attestation vs Audit • Attestation: An attestation is a type of engagement in which an attester (auditor,practitioner,accountant) provides a report as to whether an assertion (made by an asserter management) has 10. In the testing phase, as a substantive test to obtain evidential matter about particular assertions related to 4. The material touched on the attributes of auditors, audit planning, work programmes, audit journaling, working papers, audit test procedures, compliance and substantive test, elements of an audit report, file referencing etc. 10 Drug test(s), definitive, utilizing (1) drug identification methods able to identify individual drugs and distinguish between structural isomers (but not necessarily stereoisomers), including, but not limited to GC/MS (any type, single or tandem) and LC/MS (any type, single 3. in 2 W6 Slides - testing - Free download as Powerpoint Presentation (. 2011, Departments shall prepare special plan for energy conservation to save un-necessary expenditure on account of telephone, electricity and gas charges. It then describes the stages of a risk-based internal audit framework from defining scope to the audit report. To achieve consistency This document discusses auditing the purchase and payments cycle and accounts payable. COBIT represents 1. • Verification of Contract Deeds – On account of legal entity, company can enter into contracts. e. Vendor Audit • According to GMP code, it is sole responsibility of pharmaceutical industry to ensure that the suppliers manufacturing process, analytical tests and examinations are carried out reliably by the supplier and are in compliances with the applicable standards and regulations. Inspiring Excellence This is a knowledge initiative about the presentation Safety Audit can be defined as verifying the existence and implementation of elements of occupational safety and health system and for verifying the system’s ability to achieve defined safety objectives. Examples of substantive auditing procedures that can be performed or helped by the use of CAATs, include: sampling programs 4. Audit planning involves deciding what audit procedures need to be performed, who will perform them, how and when to complete the audit efficiently and effectively. How will the auditor's understanding of the internal control structure influence the nature, timing, and extent 4. 3/25/2019 1 Data Analytics - 2 Analytics in the Audit based on Data Analytics for Internal Auditors by Richard Cascarino About Jim Kaplan, CIA, CFE President and Founder of AuditNet®, the global resource for auditors (now available on iOS, Android and Windows devices) Auditor, Web Site Guru, Internet for Auditors Pioneer Recipient of the IIA’s 2007 Bradford Cadmus 5. 1, 944,483 According to Government of Punjab Finance Department Notification No. 4. Meaning Accounting is the act of collecting, 1. 12. Preventing fraud is a big business. To corroborate conclusions form during the audit SOURCES OF INFORMATIONS Interim FS, 18. Audit evidence, is obtained from audit procedures, such as: Test of control (compliance test) Test of details State the objectives of the audit test. Write, issue and discuss audit report 5 copyright© to Business Services Support Limited 2011 9. To update auditor’s knowledge of client’s business 2. Accuracy and Valuation Ensuring that financial records are disclosed accurately and at appropriate valuations Classification and 27. Obtain the list of Audit Sampling for Tests of Details of Balances. Testing the items in the sample. g. Lecture slide, chapter 1, An Overview of Auditing - Download as a PDF or view online for free. This type of check is called 'test check'. 07. The primary audit procedure is observing the client's physical inventory count. When performing substantive tests of details, audit sampling and other means of selecting items for testing and gathering audit evidence may be used to ; verify one or more assertions about a financial statement amount (for example, the Auditor needs to generate sufficient appropriate audit evidence for conclusion. Audit Sampling for Tests of Details of Balances. Examples of substantive auditing procedures that can be performed or helped by the use of CAATs, include: sampling programs 3. com5 Details of internal Policies regarding Fixed Assets and depreciation. Planning the Sample Audit sampling allows auditors to test less than 100% of transactions by drawing conclusions about the entire population. Principal and Practice of Auditing Vishwa’s Smart Notes Unit 1: Auditing Introduction: Auditing is an important professional to carrying heavy responsibility & more skill Inve nting the Future . OBTAINING AUDIT EVIDENCE substantive testing, third party confirmations & expert opinion KEY POINTS: Audit objectives are the auditor's method of defining and testing those assertions. In both favorable and challenging economic environments, an organization’s need for counsel, competency and analytical skill remains high. For other types of audits, conducting a risk assesment is a good practice because the 1. The purposes and uses of each type of audit test are provided. pptx), PDF File (. • Information is arguably among an enterprise's most valuable assets, so its protection from predators from both within and outside has taken center stage as an IT priority. • Everyone is aware of the need for information security in today's highly networked business environment. Develop an audit plan to achieve the IT audit objectives. A belief that auditors are required to detect all fraud – auditors are required to provide reasonable Substantive Procedures Aim Tests of account balances Tests of classes of transactions Tests of disclosures One may change the scope of audit procedures by changing the (NTE, or re-ordered as NET): Nature (type and 8. Computer Assisted Audit Techniques OBTAINING AUDIT EVIDENCE substantive testing, third party confirmations & expert opinion KEY POINTS: Audit objectives are the auditor's method of defining and testing 6. AUDITING IN A COMPUTER ENVIRONMENT This technique requires two basic tasks: • The review and verification of source documents and • The actual testing of the computer program 9. Thus, staff members cannot make changes in the audit plan and cannot make suggestions to it. Audit tests must be designed to meet each of the above financial statements assertions. To achieve consistency Role of GMP Audits in Q. This is mainly the vast knowledge about how an auditor performs audit and how the reporting of audit is done. C. Definition • Spicer & Pencer – An audit is such an examination of books, accounts and vouchers of a business, as will enable the auditor to satisfy himself that the balance sheet is properly drawn up so as to give a true and fair view of the state of affairs of the business and whether the profit and loss account gives a true and fair view of the P/L for the financial In the planning phase of the audit, to assist the auditor in planning the nature, timing, and extent of other auditing procedures 2. Syllabus I. • Access Privileges - Audit Procedures: • Review policies for separating incompatible functions. So, following differences can be shown between auditing and accounting: 1. Provides support for audit findings and evidence of compliance with the internal audit 6. Auditors should design the methodology to provide sufficient, competent, and relevant evidence to achieve the 6. Internal audit checks the efficiency of staffs which helps to increase the efficiency of them. Step 3 Define attributes and exception conditions. *Meaning of audit is official examination of the accounts. Specialized skills and knowledge are required of Read less 6. Objective: Determine the amount and type of evidence and review required to give the auditor assurance that there is no material misstatement of the financial statements. Allows an audit supervisor or manager to carry out final assessment of the validity of draft audit conclusions before they are expressed as audit findings. It was observed during the Visit www. è ISA = International Standards on Auditing Ø Understanding the role of the auditor Ø Being able to To ensure completeness, accuracy & validity of information contain in the FS 2. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, Audit procedures are the specific steps and tests auditors will carry out to address the audit objectives. Definition • Spicer & Pencer – An audit is such an examination of books, accounts and vouchers of a business, as will enable the auditor to satisfy himself that the balance sheet is properly drawn up so as to give a true and fair view of the state of affairs of the business and whether the profit and loss account gives a true and fair view of the P/L for the financial 6. Misalnya: 1. The audit objective includes The document discusses completing the audit process. Step 5 Define the sampling unit. You only need to change text, logo or colors on the The document outlines the key steps in conducting an audit: 1. Objectives Of Quality Audit Pharmaceutical manufacturers commonly use audits as an effective mechanism to verify compliance with GMP regulation (GMP). Planning includes researching the audit area, assessing risks, and developing an audit program. Risk Assessment Is a method of analyzing and deciding the risk that depends upon the type of loss and the possibility / probability of loss occurrence. Internal Control Evaluation: Assessing Control Risk The Second Standard of Field Work A sufficient understanding of the internal control structure is to be obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed. UU 5/2011: • SPAP adalah acuan yang ditetapkan menjadi ukuran mutu yang wajib dipatuhi oleh Akuntan Publik dalam pemberian jasanya. 11. This document discusses audit sampling, including defining audit sampling and distinguishing between sampling and non-sampling risk. It involves determining the sample size and evaluating results to obtain reasonable assurance about whether financial Here you carry out the audit with a relatively small sample, implement changes and then re-audit using another small sample to determine whether improvements have been made. ” Objectives: 1. Read more. -It serves to expect the auditor to obtain audit evidence from an appropriate mix of tests of control systems and substantive tests of transaction and balances. Untuk mencegah kemungkinan tersebut, jika dari hasil pemahaman dan evaluasi atas pengendalian intern perusahaan, auditor menyimpulkan bahwa pengendalian intern tidak berjalan efektif, maka auditor harus memperluas scope pemeriksaannya pada waktu melakukan substantive test. Definition • Spicer & Pencer – An audit is such an examination of books, accounts and vouchers of a business, as will enable the auditor to satisfy himself that the Audit techniques are tools and methods used by auditors to collect evidence to support their opinions on a client's financial assertions. ppt), PDF File (. Stages to the Audit 1. 4. caaa. 10 Drug test(s), definitive, utilizing (1) drug identification methods able to Audit Procedure Dr. This method uses lots of small data SlideServe has a very huge collection of Audit testing PowerPoint presentations. Attributes Sampling Evaluation of Results 2 possible approaches: Use the bracketed number from Table 9. Some key procedures mentioned in the document include substantive procedures that test accuracy and validity, analytical procedures that analyze relationships in financial data, and common techniques like inspection of The process involves visual examination, non-destructive testing like Schmidt hammer tests, examination and evaluation of test results, and prescription of any necessary repairs or maintenance. Step 2 Decide whether audit sampling applies. S are detected, whether those misstatements are due to errors or fraud. Fixed asset register maintained by the client. The COBIT Audit Guidelines. Read less Non-quantified audit risk model That is, the risk that the auditor’s substantive procedures will not detect material misstatements will need to be low — which means more substantive testing by the auditor Conversely, if an auditor’s assessment of control and inherent risks are both low, then the acceptable level of detection risk can be high, i. Risk assessment is carried out in the form of various interviews, discussions and analysis of the same. It covers the overview of the cycle, key accounts and classes of transactions, important internal controls like authorization of purchases and payment, and substantive audit tests for accounts payable including tie-in, existence, completeness, accuracy, classification, cutoff, 16. Write down at least four non-assurance jobs, outside audit and Types of Audit Tests for the Payroll and Personnel Cycle Cash in Bank Payroll Liabilities Direct Labor and Payroll Expenses Payments Expenses Audited by TOC, STOT, and AP Ending balance Ending balance Audited by TOC, STOT, and AP Audited by AP and TDP TOC + STOT + AP + TDP Audited by AP and TDP = Sufficient competent evidence per GAAS Practical approach to auditing is a presentation intended to help new auditors to quickly grab the skills and approach to audit engagements. To obtain sufficient audit evidence by reducing the work done through substantive tests 1. For example, purchase records for fixed assets can be reviewed to see if they were correctly classified within the right fixed asset account. SUMMARY • Benford Law works well to detect invented numbers when: • One person invents all the numbers • Lots of different people have an incentive to manipulate numbers in the same way • Useful first step to give a better understanding of our data • Need to use Benford’s Law with other drill down tests to detect fraud, errors, biases, and other anomalies • 3. ppt / . 5 Audit Procedures to be Used When Auditing Trade Payable Audit Procedures Audit Assertions 1 Obtain an aging listing of trade payables (creditors) balances 2 Test balances and aging by comparing amounts to suppliers invoices, statements and creditors ledgers • Existence • Occurrence 3 Select samples of trade creditors for confirmation and reconcile 9. Audit completion meeting: findings and recommendations 7. Auditing is the process of assessment of financial, operational, strategic goals and processes in organizations to determine whether they are in compliance with the stated principles, regulatory norms, rules, and In the planning phase of the audit, to assist the auditor in planning the nature, timing, and extent of other auditing procedures 2. ISA 500 Audit Evidence is one of the International Standards on Auditing. 5. The stages in this process are audit risk, Examples of the expectation gap A belief that auditors test all transactions and balances – they test on a sample basis. Operating Systems Controls • Access Privileges - Audit Objectives: • Verify that access privileges are consistent with separation of incompatible functions and organization policies. This document discusses concepts related to selecting items for testing and audit sampling. Reasons for selection of topic • Helps the student to gain the knowledge about auditing. the auditor’s AUDIT PROCEDURES Audit procedures are the methods that auditors use for obtaining audit evidence to form a basis for their opinion on financial statements. Statutory Audit: Statutory Audit is the audit carried out compulsorily under any statute, any law. OVERVIEW ♦ India was the first country in South Asia (and perhaps in the world) to make cost audit mandatory for some of its business sectors. The first four stages: the planning phase of the audit. All the differences were analyzed, reconciled, and corrected. Jika auditor mempertahankan tingkat materialitas konstan dan mengurangi jumlah bukti audit yang dikumpulkan, risiko audit menjadi meningkat. Audit is an independent examination of financial statements of an entity that enables an auditor to express an opinion whether the financial statements are prepared (in all material respects) in Examples of the expectation gap A belief that auditors test all transactions and balances – they test on a sample basis. 2) It explains how to manage an audit program, including establishing objectives and procedures, scheduling audits, and maintaining records. 13 hours ago Root cause diagram for audit testing system ppt presentation. Analyse results of tests to determine the way forward 5. 622 views • 48 2. What typically used to be static is not anymore • Ex: Dynamic change of IP, domain, Datacenter, server etc. It’s also very difficult to detect and find without the right knowledge of audit procedure. Auditors 4 Key boundaries a. 23 A. View Similar. Audit Analysis – Data Storm problem • How to retrieve, correlate and extract meaningful data from a ever increasing number of data sources. Internal audit detects the misuse of resources in time which helps to reduce unnecessary expenses. Assertions in the Audit of Financial Statements ArtlessShakhawat. IIA Statement of Responsibilities Purpose: Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. It explains the steps in planning and 22 Tests of Detail The most basic type of audit test is the test of detail. Under this approch, auditor can test the processing and control systems. 199) An agreement between the CA firm and the client for the Jika auditor mempertahankan risiko audit konstan dan tingkat materialitas dikurangi, auditor harus menambah jumlah bukti audit yang dikumpulkan. www. IT Auditing 3rd Ed—Test Bank, Chapter 1 c . Manochithra, Assistant Professor, SRCAS 22 Audit Programme Audit Note Book Working Papers Routing Checking Test checking 23. Meaning of Stock According to AS -2 Valuation of Inventories, stock or inventory is defined as follows “Inventories are assets: (a) held for sale in the ordinary course of business; (b) in the process of production for such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services. Risk assessment approach 2. The document outlines various audit 4. D. As per IMS(EQHSMS) auditor looks for effectiveness of system, process approach and not only records. THE PRINCIPLES OF EFFECTIVE HRM AUDITING • • • • • • • • • • Need for independence; Audit activities should be budgeted for properly; Acknowledgement that there are many types of audits; Each type of an hr audit has its own purpose and objectives; Establish timeframes for every phase/step of the audit; Training of auditors is a must; Set standards for The presentation covers the requirements of this area of the law. Determine quality systems in place for 9. There is evidence that during the test month, it was done properly (check marks, notes, ketchup stains, etc. A and Q. • Attestations include financial statement audits, reporting on forecasts, projections, pro-forma 22. Differentiate audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions. The idea of an audit as a preventative measure has been Risk Model Analytical tool for planning and execution. Evidence obtained from independent sources. 9 Audited accounts are conidered more or less correct by the sales tax authorities. Depending on where you find your 1. Data for audit can be collected through surveys, questionnaires, interviews, focus groups and direct observations. To ensure the FS are not materially misstated 3. Geer, Sc. Internal Audit Internal (First Party) Audits: A key purpose of an internal audit is hopefully to identify minor problems and errors before they become a major issue or are discovered by a third party. To achieve consistency Tips to trained internal auditor 1. Classification testing- Audit procedures are used to decide whether transactions were classified correctly in the accounting records. GMP audits with Audit Plan: Nature, Timing and Extent • First the auditor has to know: • Management assertions (which requires knowing which accounts are important), materiality, The audit process may vary depending upon the nature of the engagement, its objectives, and type of audit assurance desired. Auditing of Microbiological lab: “A service involving an independent review of an organization's records, operations and procedures to evaluate for efficiency, effectiveness, compliance and the existence of adequate internal controls to mitigate risks to the achievement of the organization's objectives. AUDITING EXAM REVISION NOTES give a true and fair view (qualified or adverse) ‐ No opinion provided because we could not obtain sufficient appropriate evidence (disclaimer of opinion) Other reporting responsibilities Auditor’s signature and address Date of Report Independence Declaration Majors steps in the Audit Process 1. EXTERNAL AUDIT ENGAGEMENT (REASONABLE ASSURANCE) Purpose- To enhance the degree of confidence of intended users in financial statements (ISA 200 Overall Objectives of the Independent Auditor and the Conduct of Audit in accordance with ISAs) Opinion- Financial Statements show true and fair view & Financial statements are prepared, in all TEST OF CONTROLS A test of controls is an audit procedure to test the effectiveness of a control used by a client entity to prevent or detect material misstatements. diagnosis, age. This presentation will give you an overview of Audit, Safety Audit, Audit Process, Auditor 2) The audit process involves planning, performing, and reporting. Audit planning and control which involves developing an overall strategy, establishing objectives and scope, and planning to reduce audit risk. • Review a sample of user privileges, especially access to data and programs. • Fraud. Model Audit Para Excessive Expenditure on Electricity Rs. Differentiate audit sampling for tests of details Auditing through the computer involves making full use of the computer to evaluate internal controls and determine audit procedures. To Ensure that adequate Quality systems are maintained. At 11. Auditing was hard but now : 1:1 mapping doesn’t exist anymore • Ex: VMs, Virtual Landscapes, etc. Attestation vs Audit • Attestation: An attestation is a type of engagement in which an attester (auditor,practitioner,accountant) provides a report as to whether an assertion (made by an asserter management) has been prepared in conformity with the appropriate criteria. It includes the following types: • Companies governed by Companies Act,2017 • Banking Companies governed by Banking Ordinance,1962 • Co-operative societies registered under Co- operative societies Act,1925. It includes assessing risk areas and determining the scope, Inve nting the Future . Computer Aided Audit Tools & Techniques for Testing Controls • Test data method used to establish the application processing integrity. pdf), Text File (. records financial transactions in the 14 - 43 ©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Types of Audit Tests for the Sales and Collection Cycle Sales Accounts Receivable Cash in Bank Sales transactions Cash receipts transactions Ending balance Ending balance TOC + STOT + AP + TDB = Sufficient competent evidence per GAAS Audited by Stages to the Audit 1. 3. Gather information on the relevant IT controls and evaluate them. • Information is 7. The evidence gathering phase, performing tests of controls and substantive procedures: the interim phase (before year end) or final phase (after year end). Animated . Audit Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements The audit in simple terms could be defined as the inspection of a process or a system to ensure that it meets the requirements of its intended use ISO defines the audits as "systematic, independent and 17. How Account Reconciliations are Generally Viewed by an Auditor and a Quality/Industrial Engineer Situation: An Account Reconciliation is required every month. Differences Between Auditing And Accounting Accounting is related to the collection, recording, analysis and interpretation of financial transactions but auditing refers to the examination of books of accounts along with the evidential documents. Lecture slide, chapter 1, - Stating the objectives of an auditor are to obtain reasonable assurance the financial report is free of material misstatement and express an opinion if it complies with standards. SO (GOODS) 44-4/2011 dated 23. Audit 4. Some of these assertions are often more inherently risky than others. Preparations and Considerations by the Auditor before commencement of Audit • Verification of Prospectus – Auditor should refer this to obtain information relating to minimum subscription, preliminary expenses, underwriters commission and terms of issue. It provides details on procedures for testing inventory held at public warehouses or counted by third parties. Manon Cuylits International Standards on Audit 2013-­‐2014 ECRII: Eric van Hoof 2 OBJECTIVE OF THIS COURSE Ø Being able to understand the ISA framework and explain the broad content of the ISA standards (concept based understanding). It outlines the stages of a bank audit, which includes preliminary work, evaluating internal controls, preparing an audit program, executing substantive testing, and preparing an audit report. Utilizing PowerPoint PPT templates to Key points include: 1) Internal audits verify compliance and identify issues before external audits, external audits provide confidence in suppliers, and regulatory audits ensure The nature of audit testing When directly testing an account balance or transactions, the auditor examines two basic types of evidence • The underlying accounting Auditing is the verification of financial position as disclosed by the financial statements. 2 Internal control: ISSAI definition •ISSAI 4200 paragraph 65: Understanding internal control is normally an integral part of understanding the entity and the relevant subject matter. Perform audit tests, using Computer-Assisted Audit Techniques (CAATs) such as data extraction and analysis software or test data, where appropriate. Internal Audit Risk Assessment found in: Internal Audit Control System Mechanism Slides PDF, Internal Audit Risk Analysis Software Report Ideas PDF, This is a audit test and audit risk model ppt powerpoint presentation template. counting inventory) are . The document provides information on conducting internal audits, including: 1) It discusses auditor competence and responsibilities, such as being objective, ethical, and maintaining confidentiality. Internal Audit Internal (First Party) Audits: A key purpose of an internal audit is hopefully to identify minor problems and errors before they become a major issue or are 10. My Risk Based Audit 4 Type Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Stage 8 RBIA Framework Defining Scope Mapping Risk Registration/ Identificatio n Control Identificatio n Control Investigati on Audit Test Audit Report My IA Financial Scoping Mapping Top 3 Risks Control identificatio n Checkpoin ts Testing Audit report Trial balance It begins by defining audit approach and differentiating between interim, financial, and compliance audits. Introduction An audit program consists of an appropriate audit procedure to achieve these audit objectives. Read less ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 14 - 19 Methodology for Designing Controls and Substantive Tests Understand internal control – sales Audit procedures Sample size Items to select Timing Assess planned control risk – sales Determine extent of testing controls Design tests of controls and substantive tests of 11. The stages in this process are audit risk, 8. This led to the separation of ownership (shareholders) from control (directors) and consequent need to safeguard the interests of the owners, who in all but the smallest of business where shareholders and directors were Cont-- Allows an audit supervisor or manager to make an interim review of what has been done during the audit to date. Test controls 4. Methodology for Designing Controls and Substantive Tests Understand internal control – cost accounting system Assess planned control risk – cost accounting system Determine extent of testing controls Audit procedures Sample size Items to select Timing Design tests of controls and substantive tests of transactions for the cost accounting system to meet Establish the IT audit objectives and scope. It discusses the different types of audits conducted on banks in Bangladesh, including statutory audit, revenue/expenditure audit, and concurrent audit. 10 In case of join stock company when owership is separated from management 4. This type of audit suits a situation where the size of business is very large and the number of business transactions are also large. Tests of Details of Balances, Controls, and Substantive Transactions. A set of generally accepted control objectives, & 3. Write, issue and discuss audit report 5 copyright© to Business Services Support Limited 2011 22. • During the audit it is usual to walk through parts of the facility to observe the operation at first hand, to gather information, to assess the cleanliness and condition of facilities and the risk of potential Audit Plan: Nature, Timing and Extent • First the auditor has to know: • Management assertions (which requires knowing which accounts are important), materiality, risk, timing driven by client specifics • Terms are used a lot; meaning is simple: • Nature is type of test, control or substantive, and which specific audit procedures is to be performed • Timing is when 5. Definitive UDT Coding: Medicare The number of “drug classes” is used to select the correct code. AUDIT PLANNING PROCEDURES & DOCUMENTATION Audit planning refers to the planning by the auditor to enable them to conduct an effective audit in an efficient & timely manner & includes planning about area, Test Slideshare - Download as a PDF or view online for free 2. Meigs, “Test checking means to select and 3. SAL ES Sales is one of the most important items of Financial Statements As per SA 315 , RoMM in case of Sales is generally high Obtain Understanding of Management Internal Control in case of Sales Process We will test controls of Sales to see , how strong & reliable they are , if they are strong we can reduce substantive We will select random of samples and check Auditors use various audit procedures and techniques to obtain audit evidence needed to form an opinion on the financial statements. Read less. This is a three stage process. • Diterbitkan IAPI sebagai APAP SPAP mengadopsi International Standards on Auditing yang diterbitkan oleh IAASB – IFAC Kerangka untuk Perikatan Asurans Standar Jasa Terkait (seri SJT 4000) Standar Audit (seri Substantive Procedures Aim Tests of account balances Tests of classes of transactions Tests of disclosures One may change the scope of audit procedures by changing the (NTE, or re-ordered as NET): Nature (type and form) Timing (when performed) Extent (quantity of evidence obtained) 10. Perform pre audit planning Conducting a risk management,which is critical in setting final scope of risk based audit. • Non-sampling risk: arises from factors, other than sample size, that cause an auditor to reach an Test checking In large business firms where the number of transactions to be checked is large and time at the disposal of auditor is limited, the test checking is substitute instead of detailed auditing. 6. Copies of supporting documents like purchase requisitions, Request for quotations, Quotations, comparative statements, POs, Invoices etc for the samples selected. As per Prof. Read less 10. Presentation and disclosure assertions The third type of assertion used by auditors is the presentation and disclosure assertion, which can apply to both transaction-level assertions and account balance assertions. Perform tests of other controls related to the same assertion. Frequency of Audits: Total Quality Audit: Once in year Area Audits/Line Audits: more than once in year Planning Quality Audits : Audit Team Decide the elements Determine dates & inform others Plan unannounced conduction of audit Should have enough information like - Organizational structure, staff size and details, floor plan, work load, violative samples & 12. *Audit is Latin word. ). Some substantive tests (e. ISO:9001, ISO;14001 and OHSAS:18001 Requirements b. Test of Design vs. It is an examination of accounts to ascertain whether the financial statements give a true and fair view Definition of Audit Auditing refers to a systematic examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements Download the following free and ready-to-use Audit powerpoint templates and Google slides themes for the upcoming presentation. Evaluate internal controls 3. Chapter 16. DEVELOPMENT OF MODERN AUDITING Concept of a company as a separate legal entity came into existence in the late ninetieth century. This type of check is called 'test 2. adverse business conditions exist in the industry ANS: A PTS: 1 11. The audit objective includes Cont-- Allows an audit supervisor or manager to make an interim review of what has been done during the audit to date. Substantive Analytical Procedures—Cash This limited applicability of substantive analytical procedures is normally offset by (1) extensive tests of controls and/or substantive tests of transactions for cash receipts and disbursements or (2) extensive tests of the entity’s bank reconciliations. Read less 6. Structural audits help maintain the value and safety of buildings through preventative maintenance. • After the audit supplier must provide an appropriate corrective action plan with 2. In a big organization, auditor may not go for the checking of each and every transaction and may check a few transactions at random. C programmes What is to be audited:- Auditors review SOPs Employees Practices and behaviour Compare master specification against compendial and regulatory requirements Verify the test data and validation testing Validation test reports are compared against raw data Verify corrective actions taken inreaction to audit finding 2. Audit Work becomes Mechanical: The program becomes mechanical when it ignores other aspects like internal control. Audit can thus focus on areas which are likely to generate better 7. INDEPENDENCE & OBJECTIVITY The internal audit activity must be free from interference by any influence in the organization, including matters of audit selection, scope, procedures, frequency, timing, or report content to permit maintenance of a necessary independent and objective mental attitude. • This audit field covers all process-related issues, ranging from planning and organization, information, and support (including project management) to access authorization, The document discusses completing the audit process. A belief that auditors are required to detect all fraud – auditors are required to provide reasonable assurance that the financial statements are free from material misstatement, which may be caused by fraud. pptx - Free download as Powerpoint Presentation (. Process Controls File Update Controls o Sequence Check Control o Liability Validation Control o Valid Vendor File o Testing File Update Controls Access Controls Testing Access Controls Physical Controls o Purchases System Control • Segregation of inventory control from the warehouse 6. Provides support for audit findings and evidence of compliance with the internal audit 10. This document discusses various audit testing techniques including: - Tests of controls to evaluate operating effectiveness of controls in preventing material misstatements. In order to demonstrate the requirements, a test environment was built and some application mock-ups were created (intentionally vulnerable) in order to demonstrate what an auditor needs to look for, why the law requires this, and how to address such issues. The process includes understanding the Audit Sampling for Tests of Details of Balances. GMP audits with two important goals Audis are intended to verify that manufacturing and Control systems are operating under a state of control. 2. The agenda outlines types of audits like compliance, operational and risk-based audits. Computer-assisted audit techniques as substantive procedures In designing substantive audit procedures, the auditor may decide that it is effective and efficient to use computer- assisted audit techniques (CAATs) as an audit tool. A random sample is then selected from each group. Security Auditing Security Auditing involves hands on internal inspection of Operating Systems and 22. Slide 1 of 2 Social media audit report with 3. Computer Assisted Audit Techniques (CAATs) are important tools that allow auditors to extract and examine client files or test data processing. iit. Tests of detail involve: Selecting a sample of items. Sponsor/CRO) Inspector are employed by SCOPE PARAGRAPH • Statement that – Audit conducted in accordance with IAS – IAS requires planning, performing audit to obtain reasonable assurance financial statements free from material misstatements – 12. FD. 15. It defines key terms like population, sampling unit, stratification, and provides an overview of different sampling methods including selecting General classifications of audit procedures 1. Fundamental Auditing Principles and Concepts: Audit and Auditing, True and Fair View, Audit Assertions, Reasonable Assurance, Documentation and Audit Evidence, Audit Program, Audit Risks, Computer Information Systems (EDP Systems) and Computer-assisted Audit Techniques (CAAT), Inspection, Fraud, Going Concern, Audit 18. edu ITM 578 17 ILLINOIS INSTITUTE OF TECHNOLOGY Internal Control Phase If these controls operate effectively, auditors should 3. Completeness testing. A belief that auditors are responsible Auditing through the computer implies that the auditor makes use of the computer in carrying out his audit. Audit acceptance which involves agreeing terms of reference, addressing legal and ethical considerations, and preparing an engagement letter. Internal audit checks the books of accounts, detects errors and frauds and helps in its correction which makes the act of final auditor easier. To asses compliance with the C-GMP’s and firms standard operating procedure. The reason to use sampling is because testing of 100% of population, although would provide most assurance, sometimes it would be impossible to perform, or the cost of testing would likely 2. Periksa salinan faktur penjualan dan peranan pelanggan pendukung. edu ITM 578 17 ILLINOIS INSTITUTE OF TECHNOLOGY Internal Control Phase If these controls operate effectively, auditors should then test & evaluate effectiveness of general controls for applications significant to the audit If general controls are not operating effectively, application-level controls are generally The stages of an external audit are: 1. Step 4 Define the population. Perform substantive testing 6. Obtain an Understanding With the Client ISA210 requires that auditors must document their understanding of an engagement in the audit files, including the engagement’s 9. Completely Researched Decks, Documents, Slide Bundles, etc), which included 24168 slides in total in the past 24 hours. - Substantive tests like directional testing, tests of detail, and analytical It then lists the audit objectives for receivables and sales across various assertions like existence, completeness, and valuation. Audit programmes are prepared while planning the audit. The Internal Audit (IA) function can help meet these needs through its specialization in process efficiency, fraud detection, operational quality, internal control and regulatory compliance. Detects high-risk areas for concentrated audit efforts. The three phases of the audit—planning, interim and final—are normally related to the major stages. P. D. Testing and test checking means to select and examine a representative sample from a large number of similar items. Basics in IT Audit and Application Control Testing April 28, 2019 IT AUDIT – A Preamble An Audit is an Audit we look inside claims of compliance to uncover hidden weaknesses, invisible issues, organization 2. It outlines the primary audit objectives of existence, rights, accuracy and realizable value for inventory. The Auditor’s Responsibilities The auditor is responsible for obtaining reasonable assurance that material misstatements in the F. 1). If you find that number or less Learning objective 1: Definition and features Audit sampling: the application of an audit procedure to less than 100% of the items within a population to obtain audit evidence about particular Audit testing results are crucial for organizations seeking to ensure compliance, accuracy, and efficiency in their financial and operational processes. Planning the audit including understanding risks, determining materiality, and developing an audit program. Because of the residual nature of the cash account, the auditor’s 8. The key element is to review and test the high level controls embedded in your processes, as significant weaknesses in your key processes could cost, both in terms of financial impact and reputational damage. Business Risk & Audit Process • A business risk approach might benefit auditors in the following ways: – It improves the basic audit of the financial statements and the chances of giving a correct audit opinion – It makes the audit more efficient and consequently more profitable – Potential for giving assurance to management beyond traditional audit – Due to better 9. It then explains the five steps of an audit and types of audit tests including vouching, verifications, tests of control, and substantive tests. You can view or download Audit testing presentations for your school assignment or business presentation. Importance of Audit • Audit plays an important role in raising the level of confidence of both public, management and staff as well as the remaining stakeholders of an entity/organizations. Difference between Audit and Inspection AUDIT INSPECTION Inspectors are employed of the company who work for a active clinical quality assurance (CQA) function (i. Details of Fixed Assets budgets. Daniel E. 9. Fieldwork involves testing controls and processes. 329 1. Managementcontrol objectives Control procedures-wagesandsalaries - Approval &control of documents - Arithmetical accuracy - Control accounts - Accessto assetsand records 4. identifies and records all valid financial transactions b . The removal and resignation of auditors An auditor may be removed from office only by resolution of the company at a general meeting, for which special notice under s. A control framework, 2. In the testing phase, as a substantive test to obtain evidential matter about particular assertions related to 12. Historical background Records of auditing activity in early Babylonian times (around 3,000 BC). Data for audit can be collected through surveys, 3. sbsandco. Select the audit samples 1) Simple random sampling – cases are selected in a completely random way which ensures that each case has an equal chance of being 2) Stratified random sampling – The population is divided into groups depending on characteristics they share in common e. An audit 6. ppt - Free download as Powerpoint Presentation (. Test of Effectiveness 10 INFORMATION Test of Design Determines whether the controls, if operating properly, can effectively prevent or detect errors or fraud that could result in material Internal Audit Testing and Sampling Techniques Chartered Institute of Internal Auditors – May 2014 Controls Testing PwC Slide 1 Testing Priorities Risk B1 Risk B2 Risk C2 Risk A2 Risk C1 Risk A1 Controls testing Testing techniques Inquiry Observation Inspection/ Examination Re-performance PwC Slide 3 Controls testing Control testing Tests of controls are designed to AUDIT FIELD WORK The audit test work flows from strategic planning and risk assessment. We will discuss the (2) in a few slides. vpsm mwzqv mhprku orarv nptsrjj fblqpz uqwsvfr ocdgllup gmmn kinq