Financial Audit 1 Synthesis PDF
Document Details
Uploaded by AppropriateNurture7150
INSEEC
Tags
Summary
This document provides a summary of financial audit, covering key concepts, challenges, and responsibilities. It outlines the planning, action, diagnosis, and improvement stages of the audit process. The document also discusses different types of audits.
Full Transcript
Financial Audit Session 1 Challenges in Audit - Limited creativity and repetitive tasks - Stress due to workload, tight deadlines and long hours Qualities required in audit - Precision, tenacity, and organization - Strong relational an...
Financial Audit Session 1 Challenges in Audit - Limited creativity and repetitive tasks - Stress due to workload, tight deadlines and long hours Qualities required in audit - Precision, tenacity, and organization - Strong relational and communication skills - Curiosity and a thirst for learning - Business and management skills Audit categories - Financial & accounting audit: ensure compliance with financial standards - Operational audit: Evaluate internal processes for efficiency - Statutory audit: Legal requirement for certain companies or organizations - CSR audit: Focus on corporate social responsibility - IT audit: Ensures systems meet security and operational standards 8 key concepts of financial audit 1. Planning: a. Define the scope and audit framework. b. Conduct risk analysis. 2. Action: a. Collect documents and assess behaviors. b. Identify real and potential findings. 3. Diagnosis: a. Analyze findings through testing and draw conclusions. 4. Improvement: a. Recommend actions and evaluate their effectiveness. 9. Standards and Responsibilities Auditors must adhere to: o International Standards on Auditing (ISA). o Standards of Professional Practice (NEP). o Ethical codes (confidentiality, independence, integrity). Responsibilities include: o Third-party liability. o Criminal liability (e.g., for non-disclosure of offenses)
