Best way to conduct Audit

[usmanzqazi]

hi everyone tell me one thing what is the best way to do an audit of a listed company .i am in ---------- and in our firm if we do an audit in a discriptive way ,and take some time in completing our audit then client will just go to our firm and signed the accounts by our partner without asking us wether we have completed our audit or not. My question is that either we do audit in a very less time or the client is doing the right thing.
reply me

usmi

[XBRL]

very interesting audit of a listed company.....woud u mind telling me the revenue and balance sheet footing of that listed company

[smraza]

agreed with XBRL, its really very interesting that a partner signs the accounts without asking the audit manager / staff,
but afterall the responsibility is of the partner, if he is doing so he is exposed to the risk, but normally the risk and return are directly proportional, i hope u can understand what i m trying to say,

Now the best way to conduct audit can be classified into three phases, i.e. Audit Planning and Control Phase, Audit Execution Phase and then Audit Completion and Reporting,
in the audit planning phase you should document the knowledge of client business, audit materiality assessment, audit risk assessment (overall i.e. combined risk assessement) through test and evaluation of controls, Analytical Review at the planning stage etc. etc.
Then audit execution, third party confirmation circularization, substantive testing, verification of transactions, test of details, audit conclusions on each section based on the audit work performed etc. etc. etc.
Audit Completion and reporting, this includes audit finalization i.e. review by reporting manager, discussion with client for resolution of audit queries, reveiw by reporting partner, disclosures checklists, Preparation of summary review memorandum, a/c completion checklists, audit completion checklists, going concer review, subsequent event review, (Other cheklists being established by the firm) etc. etc. and finally the conclusion by the partner whether they are issuing qualified / un-qualified opinion.

These are the general procedures, which are normally applicable to all the audits, but the firm may use the customized procedures according to the nature of business of client.

Regards.


SMR

[Moon]

These are the type of firms producing those auditors who do not know that auditor's report is issued in compliance with form-35a/b/c and those who do not know that statement of changes in equity and cash flow is a part of financial statements. Too bad.....

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