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
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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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The income statement is one of the elements of financial statements. This statement is sometimes called the statement of financial performance because it records and presents the entity’s performance financially from period to period. For example, if you obtain the entity’s income statement for the period from 01 January to 31 December 2017, you will
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Overview: The balance sheet is one of the most important elements of financial statements. This statement shows the entity’s financial position at the point in time. What we mean by financial position is that this statement tells us how the entity’s assets, liabilities as well equity are at a specific time frame. For example, if
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The internal auditor is the entity’s staff that work independently and objectively. This role normally reports directly to the audit committee and board of directors of an entity. However, there are certain things that internal audit should report to senior management of the entity like CEO and CFO. For example, the internal audit might report
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Overview: Internal audit performs independence and objectives activities from the organization while its main objective is to play an important role in helping the organization to meet its primary goal. In other words, to meet the organization’s vision and mission. The important approach that an internal audit uses to ensure that its activities are added
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Internal audit integrity stays number one among the four internal audit codes of ethics. Based on the code of ethics, integrity simply means honesty to their own ethic, the company’s policy, shareholders, and the public (For some cases). Integrity will help the internal auditors to earn better trust in their professional judgments, and activities by
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