Tips for Carrying Out an Audit
Tips for carrying out an Audit.
Before an audit is assigned to staff, there are few matters that should be considered such as:
- The size of the company to be audited. (If it is a private limited co .i.e. Sdn.Bhd. 2 or 3 staff will be required. If it is a Public Listed Company 3 or 4 staff and if it's a Group audit 6 or 7 staff depending on the number of subsidiaries.)
- The budget is very important as we are always advised to stay within the budget so that the audit fees is sufficient to cover all the cost incurred especially the disbursements.
- The deadline. An audit assignment usually has very tight deadlines and therefore staff must ensure that the Audit Report is submitted to the Partner for Review on time so that the signing of accounts is not delayed.
When the audit manager assigns a job to the senior, the first thing the senior does is to meet with all his team members to discuss about the job and to delegate duties to the respective members.
The audit assistant will normally be asked to retrieve the previous year's file of the company from the filing room.
The previous year file is always used as a guide only. Staff must not copy blindly as the manager and partner will be annoyed. Staff must always tailor-make the audit for the year according to the events that occurred during the year.
Once the last year's file is retrieved, a new file will be opened for the current year's audit.
The next thing the audit senior is supposed to do is to contact the client to make arrangements as to when the audit can commence.
An audit should always be done at the clients place. This is required in order to obtain all the information necessary for the audit. The client should also be available and free during the period in order to give the auditors all the required information.
An audit is divided into 3 stages - Planning Stage, Field Work Stage and Review Stage. The first time we visit the client is at the Planning stage.
Before an audit is assigned to staff, there are few matters that should be considered such as:
- The size of the company to be audited. (If it is a private limited co .i.e. Sdn.Bhd. 2 or 3 staff will be required. If it is a Public Listed Company 3 or 4 staff and if it's a Group audit 6 or 7 staff depending on the number of subsidiaries.)
- The budget is very important as we are always advised to stay within the budget so that the audit fees is sufficient to cover all the cost incurred especially the disbursements.
- The deadline. An audit assignment usually has very tight deadlines and therefore staff must ensure that the Audit Report is submitted to the Partner for Review on time so that the signing of accounts is not delayed.
When the audit manager assigns a job to the senior, the first thing the senior does is to meet with all his team members to discuss about the job and to delegate duties to the respective members.
The audit assistant will normally be asked to retrieve the previous year's file of the company from the filing room.
The previous year file is always used as a guide only. Staff must not copy blindly as the manager and partner will be annoyed. Staff must always tailor-make the audit for the year according to the events that occurred during the year.
Once the last year's file is retrieved, a new file will be opened for the current year's audit.
The next thing the audit senior is supposed to do is to contact the client to make arrangements as to when the audit can commence.
An audit should always be done at the clients place. This is required in order to obtain all the information necessary for the audit. The client should also be available and free during the period in order to give the auditors all the required information.
An audit is divided into 3 stages - Planning Stage, Field Work Stage and Review Stage. The first time we visit the client is at the Planning stage.