Fixed-income instruments like bonds are directly prone to interest rate risks. Bond prices move inversely with interest rate movements. Thus, the investment portfolio of an investor or a company can be affected due to a change in interest rate changes. Duration matching is a strategy to counter interest rate risks. Investors can use the duration […]
Duration Matching – Interest Rate Risk Management Technique Read More »
Internal audits are crucial for many organizations and often a mandatory procedure. These audits seek to review a company’s processes and controls. Similarly, it also looks at the company’s financial systems to ensure proper bookkeeping and reporting. Once it examines all the processes, internal audits seek to identify weaknesses and recommend fixes. Internal audits are
What is Internal Audit Outsourcing? Advantages and Disadvantages Read More »
Assurance engagements may include various types or forms. These engagements involve examining a subject matter. Similarly, the subject matter may differ based on the type of engagement. The party making this examination is a practitioner. During this process, the practitioner is responsible for collecting evidence. This evidence must be sufficient and appropriate. The reason for
What is Direct Engagement? Read More »
Auditors examine a client’s financial statements to form an opinion on whether they are free from material misstatements. During this process, they need to gather audit evidence, which can help them support their conclusion. Auditing standards require the audit evidence to be sufficient and appropriate, which relates to its quantity and quality. Audit evidence may
What is Audit Documentation? Read More »
When people think of assurance engagements, they usually think of external audits. These are services provided by external auditors. With external audits, auditors aim to seek sufficient appropriate audit evidence. Based on this, they can provide an opinion related to whether the subject matter is free from material misstatement. The subject matter, in this case,
What is Attestation Engagement? Read More »
An assurance engagement is a type of service provided by practitioners. These engagements involve examining a subject matter and providing an opinion about it. There are several parties involved in this engagement. However, the party is the user of the opinion or report provided by the practitioner. These users usually base their decisions based on
Review Engagements: Definition and Types Read More »
ISA 200 deals with external auditors’ responsibilities relating the conducting the audit of financial statements. There are several objectives this standard sets to follow during the process. Similarly, it seeks to explain the nature and scope of an audit designed to enable auditors to meet those responsibilities. Among these, ISA 200 sets out various other
Professional Skepticism in Auditing Read More »
Internal audits are one of the most critical factors that can contribute to a company’s success. In essence, it involves assessing a company’s risks and evaluating its internal control systems. These processes require professionals known as internal auditors. They are employees of a company and usually work with the audit committee. There are several tasks
Internal Audit Planning: What is It and How is It Importance? Read More »
During an audit engagement, auditors need to collect audit evidence that is sufficient and appropriate. For that, they need to apply various audit procedures. These audit procedures will depend on several factors. Regardless of the procedures used, it is crucial to ensure the quality and quantity of the obtained audit evidence. Obtaining and evaluating audit
Analytical Procedures in Auditing: Definition and Its Importance Read More »
During audit engagements, auditors perform various procedures. These procedures allow auditors to test these assertions made by the management. There are several types of audit procedures that auditors may use. The effectiveness and usage of these procedures may differ according to the audit’s requirements and the assertion in question. The primary objective of audit procedures
Audit Working Papers: Current Vs. Permanent Audit Files Read More »
