Can an auditor use the work of another auditor?

use the other auditor’s work, should cooperate with the principal auditor. For example, the other auditor would bring to the principal auditor’s attention any aspect of the other auditor’s work that cannot be carried out as requested.

What must he consider when the work of another auditor is used?

The other auditor's consideration of whether to make the inquiry should be based on factors such as his awareness that there are transactions or relationships which are unusual or complex between the component he is auditing and the component the principal auditor is auditing, or his knowledge that in the past matters …

Which section uses the work of another auditor?

Standard on Auditing (SA) 600*, "Using the Work of Another Auditor" should be read in the context of the “Preface to the Standards on Quality Control, Auditing, Review, Other Assurance and Related Services”1, which sets out the authority of SAs. * Issued in April, 1995.

Can external auditors use the work of internal auditors?

In addition, the external auditor may use internal auditors to perform audit procedures under the direction, supervision, and review of the external auditor (referred to as direct assistance in this section) (see paragraphs .

What an auditor Cannot do?

Auditors cannot require management to do anything or to make any representation. However, to conclude the audit with the hope of a “clean” unqualified opinion issued by the auditor, management has to assume the responsibility for the financial statements.

What is a independent audit?

An independent audit is an examination of the financial records, accounts, business transactions, accounting practices, and internal controls of a charitable nonprofit by an “independent” auditor.

How do you audit a customer deposit?

Check that all bank charges and interest earned are recorded in the checkbook register, ledger and treasurer reports. Trace each deposit slip to bank statement and checkbook entries. Verify deposits are properly supported and that a Cash Verification Form (Forms, Chapter 9) or equivalent was used for each deposit.

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What is a documentation audit?

Objectives of Audit Documentation

Audit documentation is the written record of the basis for the auditor’s conclusions that provides the support for the auditor’s representations, whether those representations are contained in the auditor’s report or otherwise.

How do you audit outstanding liabilities?

AUDITOR’S DUTY
  1. Verify Books of Prime Entry: The postings in purchase ledger are to be checked by verifying the books of prime entry. …
  2. Verify Statement of Accounts: …
  3. Verify Credit Entries: …
  4. Accounting of Purchase Returns: …
  5. Purchases of Subsequent Year: …
  6. Obtain Reasons for Outstanding Balance. …
  7. Confirmation from Management.
AUDITOR’S DUTY
  1. Verify Books of Prime Entry: The postings in purchase ledger are to be checked by verifying the books of prime entry. …
  2. Verify Statement of Accounts: …
  3. Verify Credit Entries: …
  4. Accounting of Purchase Returns: …
  5. Purchases of Subsequent Year: …
  6. Obtain Reasons for Outstanding Balance. …
  7. Confirmation from Management.

How do you prepare an internal audit report?

The audit report generally includes the following elements:
  1. Scope and objectives (must).
  2. Results (must).
  3. Recommendations and action plans (must).
  4. Conclusions (must).
  5. Opinion (should).
  6. Acknowledgment of satisfactory performance (encouraged).
The audit report generally includes the following elements:
  1. Scope and objectives (must).
  2. Results (must).
  3. Recommendations and action plans (must).
  4. Conclusions (must).
  5. Opinion (should).
  6. Acknowledgment of satisfactory performance (encouraged).

What should you not say to an auditor?

10 Things Not to Say in an Audit Report
  • Don’t say, “Ma​​​​​nagement should consider . . .” …
  • Don’t us​​e weasel words. …
  • Use i​ntensifiers sparingly. …
  • The problem i​​s rarely universal. …
  • Avoid the bl​​ame game. …
  • Don’t say “m​​anagement failed.” …
  • 7. “ …
  • Avoid u​unnecessary technical jargon.
10 Things Not to Say in an Audit Report
  • Don’t say, “Ma​​​​​nagement should consider . . .” …
  • Don’t us​​e weasel words. …
  • Use i​ntensifiers sparingly. …
  • The problem i​​s rarely universal. …
  • Avoid the bl​​ame game. …
  • Don’t say “m​​anagement failed.” …
  • 7. “ …
  • Avoid u​unnecessary technical jargon.

Who Cannot become an auditor?

(1) A person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice. (2) Where a firm is appointed as an auditor of a company, only the partners who are Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf of the firm.

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How much does a non profit audit cost?

Cost. The cost of an independent audit varies depending on the geographic region where the nonprofit is located and how large the organization is. Audit fees can exceed $20,000 for large nonprofits located in major urban areas. It is not unusual for an independent audit to cost $10,000, even for a small nonprofit.

How much does an audit cost?

Audits are time consuming and expensive, typically ranging from $10,000 to $20,000 depending on a nonprofit’s size, according to the National Council of Nonprofits.

How do you conduct a cash count?

Substantive Procedures for Cash

Confirm cash balances. Vouch reconciling items to the subsequent month’s bank statement. Ask if all bank accounts are included on the general ledger. Inspect final deposits and disbursements for proper cutoff.

What is a cash audit?

noun. an audit confined to cash transactions for a prescribed period, for the purpose of determining the amount of cash on hand or on deposit in a bank.

How do you prepare an internal audit checklist?

Internal Audit Planning Checklist
  1. Initial Audit Planning.
  2. Risk and Process Subject Matter Expertise.
  3. Initial Document Request List.
  4. Preparing for a Planning Meeting with Business Stakeholders.
  5. Preparing the Audit Program.
  6. Audit Program and Planning Review.
Internal Audit Planning Checklist
  1. Initial Audit Planning.
  2. Risk and Process Subject Matter Expertise.
  3. Initial Document Request List.
  4. Preparing for a Planning Meeting with Business Stakeholders.
  5. Preparing the Audit Program.
  6. Audit Program and Planning Review.

What is internal check system?

Definition of internal check

: an accounting procedure whereby routine entries for transactions are handled by more than one employee in such a manner that the work of one employee is automatically checked against the work of another for detection of errors and irregularities.

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How do you do vouching of sales?

1. The auditor should verify the efficiency of the system of Internal check in operation by test checking the transactions. 2. Auditor should vouch Sales Book with the copy of the invoices, Orders Received Book and Goods Outward Book and ensure that all sales made are accounted.

What are the qualifications that a successful auditor should possess?

What are the qualities of a good auditor?
  • They show integrity. …
  • They are effective communicators. …
  • They are good with technology. …
  • They are good at building collaborative relationships. …
  • They are always learning. …
  • They leverage data analytics. …
  • They are innovative. …
  • They are team orientated.
What are the qualities of a good auditor?
  • They show integrity. …
  • They are effective communicators. …
  • They are good with technology. …
  • They are good at building collaborative relationships. …
  • They are always learning. …
  • They leverage data analytics. …
  • They are innovative. …
  • They are team orientated.

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