audit and financial statements - Essay Example

Extract of sample
audit and financial statements

The scope of external auditor's work covers the audit of financial statements, probity in the use of public money and value for money in the use of resources. Internal auditor objectively examines, evaluates and reports on the adequacy of the internal control environment as a contribution to the proper, economic, efficient and effective use of resources.
External audit is conducted in accordance with International Standards on Auditing (ISA) and with the Audit Commission's Code of Audit Practice. Internal audit's strategy and plan is agreed between internal audit and management. It is approved by the Audit Committee and cannot be directed by external auditor.
Effective co-operation between external auditor and internal auditor means more than avoiding duplication. An effective framework of co-operation and co-ordination ensures liaison, co-operation on work programmes and the sharing of information. This can be achieved through:
The external auditor has various responsibilities when it comes to performing the audit. It is the responsibility of the external auditors to perform audit of financial statements in such a way that they areable to form opinion, including:
Auditors have a responsibility to satisfy themselves that the audited body has put in place proper arrangements to secure economy, efficiency and effectiveness in its use of r ...Show more

Summary

An external auditor is appointed independent of the body being audited. An external auditor'sprimary concern is whether the financial statements are free of material misstatements. On the other hand, an internal auditor's role is determined by management and the directors and their objectives differ from that of the external auditor's…
Author : zvandervort
Save Your Time for More Important Things
Let us write a custom essay on your topic
"audit and financial statements"
with a personal 20% discount.
Find out more

Related Essays

Advanced audit
To do audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. Information can and does take many forms. Auditors routinely perform audits of quantifiable information, including companies' financial statements and individuals' federal income tax returns.
16 pages (4000 words) Essay
FOUR BASIC FINANCIAL STATEMENTS
Once the data has been collected and organised it is presented in such a way that is clear and usable and in acknowledged formats, primarily these are: 1. Income Statement: tell the profit-and-loss story for the current fiscal year. The statement records all the income generated during the period and all the expenses for the same period are deducted to arrive at 'net income' or the profit for the period.
3 pages (750 words) Essay
Audit framework
the scope of the external audit is determine is to implement generally accepted auditing standards. The auditing standards pertain to the standard of field work, general standards, and standards of reporting. Financial reviews are not accepted as part of the financial statements.
6 pages (1500 words) Essay
Understanding financial statements.
The balance sheet informs the company's stakeholders how much its resources is and how it is financed. As such, it shows the claims of creditors and stockholders on the company's assets (Fraser and Ormiston 2004).
2 pages (500 words) Essay
War Crimes and crimes against humanity
From 125,000 to 300,000 people were killed... We recognize our role in history is to bring the transgressors to justice." Ramsey Clark War crimes are torture, rape, slavery, political, racial abuse, religious persecutions, extermination, killings and indignities heaped on the vanquished by the victor during the war.
10 pages (2500 words) Essay
Non-Financial Audit
Independent, objective, and experienced people or a group of people evaluates as mentioned above, and are known as accountants or auditors. In this regard, a report is issued by the basis of results that comes out from the auditing process of a company by them.
9 pages (2250 words) Essay
Non-financial audit
In this regard, a report is issued by the basis of results that comes out from the auditing process of a company by them. The validity and
9 pages (2250 words) Essay
Risk assessment in auditing of financial statements
This paper also discusses an article published in the Journal of Accountancy in December 2009, Risk – Based Audit Best Practices, by Michael Ramos and relates SAS No. 109 relate to
8 pages (2000 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT