This category covers all kinds of auditing topics including both internal audit and external audit. In addition, we will also cover all types of procedures including control and substantive procedures.
A financial audit is a process in which an experienced professional assesses a company’s financial statements. This process aims to identify any material misstatements that may exist in those statements. Similarly, financial audits seek to ensure that the financial statements present a true and fair view of a company’s financial matters. Financial audits or the […]
Limitation of Internal Audit Function Read More »
Before taking on an audit engagement, auditors must evaluate their independence and objectivity for it. If any threats exist to these, auditors must determine the appropriate safeguards to employ against them. There are five threats that auditors may find during this process. These include familiarity, self-review, self-interest, advocacy, and intimidation threats. Each of these threats
Auditing is a process in which an independent party examines any entity’s financial information. The purpose behind conducting such examinations is for the party to express their opinion of the information. There are several parties involved in any auditing process. These include the intended users, the responsible party, and the auditor. Who is an Auditor?
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What is an Engagement Letter? An engagement letter is a written agreement used by two parties to enter into a business relationship. One party in this relationship is the client that obtains products or services, while the other party is a supplier. Through an engagement letter, both parties can specify the terms for their relationship.
Audit Engagement Letter: Definition and Content of the Engagement Letter Read More »
An assurance engagement is a type of assignment performed by a practitioner in order to express an opinion about a subject matter against criteria. Usually, this engagement allows the users to base their decisions and obtain confidence over the measurement of the given subject matter. However, the criteria for each assurance engagement may differ from
5 Elements of Assurance Engagement: All You Should Know Read More »
What are Assurance Services? Assurance services involve the independent examination of a subject matter by a practitioner. These professionals usually establish suitable criteria against which they can examine the given subject matter. In most cases, it may include analyzing a business or company’s financial statements or its processes. The primary purpose of doing so is
Types of Assurance Engagement: All You Need to Know Read More »
For auditors, it is crucial to ensure that they are independent of the client’s activities. On top of that, they must ascertain objectivity in their dealings with the client. In some cases, however, their independence and objectivity may be under scrutiny. These are when auditors face threats, which can lead to adverse effects. Ultimately, these
Advocacy Threat to Independence and Objectivity of Auditors: All You Need to Know! Read More »
Threats during audit engagements can influence auditors to provide biased or partial opinions. However, it is crucial for auditors not to allow these threats to realize. In most cases, auditors must identify these threats and take the necessary actions to prevent them. This process usually happens before auditors start their work on an engagement. There
Intimidation Threat to Independence and Objectivity of Auditors: All You Need to Know! Read More »
In an audit engagement, there are five threats that auditors may face that threaten their independence and objectivity. These threats can significantly limit the auditors’ freedom in forming an opinion and providing an unbiased judgment. Therefore, auditors need to identify these readily and safeguard against them. If they don’t do so, they face the risk
Self-Review Threat to Independence and Objectivity of Auditors: All You Need to Know! Read More »
On any given audit assignment, auditors may face some threats. These threats come from several sources and can endanger auditors’ independence and objectivity. For auditors, it is crucial to identify these threats before beginning an engagement. In most cases, there are safeguards that auditors can use to ensure these threats do not realize. There are
Self-Interest Threat to Independence and Objectivity of Auditors Read More »
