Steps of Coducting an Audit

Topics: Auditing, Auditor's report, Audit Pages: 16 (4373 words) Published: December 2, 2013

Independent University, Bangladesh

Assignment on auditing

Date: 26th July, 2012
A. H. Lutful Hassan
Deputy Director,
Career Guidance & Placement (CGP)
And Adjunct Faculty
School of Business
Independent University, Bangladesh.

Subject: Submission of assignment on “Planning of audit & independence of auditor”.

Dear Sir,
I am proud to present you my assignment which has done under your instruction. I would like to thank you for giving me the opportunity to work on such assignment. By doing this assignment, I gain lots of valuable knowledge not only on creating an assignment, but also on understanding the significance of audit analysis. I sincerely hope that this assignment meets your approval and demonstrates my ability to present assignments. If you require further clarification, I will be happy to contact you according to your convenience.

Sincerely,
Ishrat Nahid
ID: 0930183

Executive Summery

An auditor is an official whose job it is to carefully check the accuracy of business records. An auditor can be either an independent auditor unaffiliated with the company being audited or a captive auditor, and some are elected public officials. Auditors are used to ensure that organizations are maintaining accurate and honest financial records and statements.

In this report I have written about the plan of audit and the importance of independence of auditors. Planning the audit is an important step to conduct the audit. Auditor uses different planning methods to determine risk assessment, assessment of internal controls etc. The auditor either internal or external cannot complete all the aspects of the audit in one year. The auditors plan the audit is such a way they can cover the audit over a period of time.

Auditor independence is one of the most important issues in accounting practice today. Independence increases the effectiveness of the audit by providing assurance that the auditor will plan and execute the audit objectively. High-quality audits enhance the reliability of the financial reporting process by investors and other users.

Table of Contents

Topic Page no

1. Planning of audit 5-14 2. Independence of auditor 15- 16 3. References 17

1) An effective planning of Audit from the day of appointment till the submission of audit report

Planning refers to the process of deciding what to do and how to do it. Planning involves selecting mission and objective and the actions to achieve them; it requires decision making that is, choosing from among alternative future course of actions. Plans thus provide a rational approach to achieving reselected objectives. Planning is an intellectually demanding process; it requires that we consciously determine courses of action and base our decisions on purpose, knowledge and considered estimates.

An audit plan is the specific guideling to be followed when conducting an internal or external audit. Internal audits are usually conducted by a company’s accounting staff and are primarily used for a management review of accounting process. External audits are conduct by external public accounting firms or private certified accountants (CPA) to ensure outside stakeholders that the company’s financial information is prepared in accordance with that jurisdiction’s accepted accounting principles. External audit usually use a formal audit plan for auditors to follow when conducting audits.

Audit planning improves the quality of audit work. It is necessary for an effective, efficient and timely audit. Adequate audit planning establishes the right means to achieve the...

References: http://en.wikipedia.org
http://www.referenceforbusiness.com
http://www.blurtit.com
http://www.nysscpa.org/cpajournal/2003/0103/features/f013003.htm
Auditing, an integrated approach, 8th ed, Arnes,james
Foundation of financial management, 12th Hirt, block
Auditing Principles and Procedures,Khawaja,Saeed
Assurance (Study manual) CA Professional Stage Knowledge level, 1st ed
Audit planning is two way Street,Anderson
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