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Auditing - Coursework Example
Pages 3 (753 words)
Auditing Question 4 An organization has to adhere to the standards formulated by regulatory bodies. Standards are essential ingredients to the development of appropriate principles and procedures to be followed (Gomez, 2012)…
The general auditing standards require that an audit is carried out by qualified staff with appropriate skills, experience and training (Gomez, 2012). In order for a company to ensure that this standard is followed, a company ought to recruit competent audit staff. In this case, the chairman of the board of directors confirmed that the company employs well trained and qualified personnel. Therefore, this means that the auditors were well trained and qualified. However, the audit report does not give the auditor general’s credentials. Field auditing standards require high quality and timely execution of audit. An auditor is required to plan the audit process. In this case, if the audit process had not been planned, it would not have been ready for presentation to the shareholders and other stakeholders. Shareholders should receive an audit report in order to determine the progress of the company. After completion of the audit process, auditors are required to make an audit report giving an opinion on the financial statements of the organization. Additionally, the report is supposed to follow a given format, which includes a title, addressee, introduction, scope of the audit, opinion of the auditor, date and the auditor general’s signature (Gomez, 2012). However, although the auditors of BP p.l.c made a report, they did not follow the required format. ...
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