Definition: The Balance sheet audit approach is a kind of audit approach that executes by the auditor in the situation that auditors perform most of their testing on the items in the balance sheet rather than items or transactions in the income statement. An auditor applies the balance sheet audit approach based on the concept …
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Definition: Audit working papers refer to the documents prepared by or use by auditors as part of their works. Those documents include summarizing the client’s nature of the business, business process flow, audit program or procedure, documents or information obtained from the client, and audit testing documents. Audit working papers are sometimes referred to as …
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Definition: Audit documentation refers to the records or documentation of procedures that auditors performed, the audit evidence that they obtained and the conclusion that makes by them based on the evidence obtained. Audit documentation is sometimes called audit working paper or working paper. Internal control documents that auditor prepare in Ms words, Ms excel or …
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What is the analytical review? Analytical review is one of audit technique that used to assess the reasonableness of accounts balance, amounts, and transactions that report in the financial statements. This procedure is not used to confirm the correctness as well as the accuracy of the amount or balance of the account, but it is …
Before making a conclusion and express an audit opinion on the financial statements, the auditor needs to assess whether the audit evidence that they obtain are sufficient and appropriate for them to make a decision or not. Sufficient audit evidence here mainly refers to the number of audit evidence. And the appropriate here refers to …
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What is audit evidence? Audit evidence refers to information or data use or collects by auditors as part of their audit works so that they could conclude their opinion on whether or not financial statements are prepared in all material respect and accordance with the applicable financial reporting frameworks. Before auditors could conclude the financial …
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Definition: Analytical procedures are the procedures that use by auditors to obtain audit evidence so that they could assess and evaluate the financial information that presents in the financial statements based on the concept that the financial information has plausible relationships with the other’s financial and non-financial information or data. Auditors use the analytical procedures …
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Audit Objective: The primary objective of an audit of financial statements is to let auditors work independently and objectively to review the financial statements and express their opinion based on the result of evidence obtained. The audit opinion and audit report are really mean to the users of financial statements. The users of financial statements …
Definition: Internal Audit Objectivity or objectivity is one of the internal audit codes of ethics that requires the auditor to stay unbiased and highly disciplined in all conditions. The auditor should eliminate or remove all conditions or factors that could impair their professional judgment. Two main factors auditors need to consider to ensure that they …
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Confidentiality is one of the most important of internal audit’s code of ethics that required the internal auditors to keep information that they obtain from clients during their audit confidential. In other words, the information should not hand to people that are not authorized to access it. Normally, the internal auditors could have the right …
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