What should and auditor consider in developing the audit objectives of a particular engagement?

What should and auditor consider in developing the audit objectives?

Audit program objectives can consider the following:

  • Management priorities.
  • Commercial and other business intentions.
  • Characteristics of processes, products, and projects and any changes to them.
  • Management system requirements.
  • Legal and contractual requirements and other requirements to which the organization is committed.

What factors should an auditor consider prior to accepting an engagement?

Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client’s management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or …

What are the things to consider in developing the audit plan and why?

Audit Planning & Developing an Active Audit Plan – Considerations, Advantages

  • Agreement with the Client.
  • Scope of Audit work (Audit Engagement Letter) …
  • Knowledge of the Client’s Business.
  • Knowledge of the Accounting System in Use.
  • Information about Client’s Staff.
  • Technical Details.
  • Instructions to and Information from Client.
IT IS INTERESTING:  You asked: Which type of bra is best for bride?

What are the important factors that auditors should consider while carrying out auditing of a company?

Establish criteria of the audit

  • Relevant policies.
  • Processes and standard operating proceudures.
  • Performance objectives and KPIs.
  • Statutory and other relevant regulatory requirements.
  • Management system requirements (e.g. other ISO standards)
  • Risks and opportunities as determined by the auditee.
  • Internal codes of conduct.

What must an auditor consider when undertaking an audit?

The auditor must consider whether the accounting policies applied are consistent with the applicable financial reporting framework. 3. Objectives and strategies and related business risks The management of the company should define the objectives of the business, which are the overall plans for the company.

What are the objectives of the auditor when she he accepts the audit engagement of a company?

The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared in accordance with accounting standards.

Why is it important for an auditor to establish that the preconditions for an audit are present?

Preconditions for an audit

This means that the auditor must do two things. First, the auditor must determine the acceptability of the financial reporting framework to be applied in the preparation of the financial statements. … To provide the auditor with access to all information necessary for the purpose of the audit.

What significant matters should be considered by the auditor in developing the overall audit plan?

The auditor should consider the nature, extent, and timing of the work to be performed and should prepare a written audit program for every audit.

IT IS INTERESTING:  How much should you spend on an engagement ring UK?

How do you develop an audit plan what is important to consider?

How to Build an Audit Plan

  • Assess business risks. …
  • Verify the appropriateness of accounting policies and procedures. …
  • Identify areas where special audit consideration may be necessary. …
  • Establish materiality thresholds. …
  • Develop expectations for analytical procedures. …
  • Develop audit procedures. …
  • Reassess the plan.

When designing an audit sample the auditor should consider?

. 17 When planning a particular sample, the auditor should consider the specific audit objective to be achieved and should determine that the audit procedure, or combination of procedures, to be applied will achieve that objective.