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strategic audit report
- Module
- Accounting and Finance
- Institution
- Accounting And Finance
report for strategic audit othm level 7
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By: lesedimasase • 3 months ago
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BRIEF HISTORY OF THE FIRMUHY Hassan Naeem & Co (UHY HNCO) was established to provide an institutional development platform for
talent development and to build a quality center that will meet the growing needs of the business community.
UHY's priorities are focused on bringing value to its customers through the achievement of continuous, efficient
and reliable innovation. Such confidence will be achieved while respecting status and sovereignty. UHY partners
have extensive experience in the fields of Taxation, Auditing, Accounting, Business and Financial Consulting.
Honesty, dedication and integrity combined with the highest standards of professionalism and personalism form
the core of all the activities. A dedicated team of professionals working in various fields is the key to our success.
UHY aims to establish close customer relationships. Customers stay informed about the ever-changing business
environment through advice, publishing, circulars and memos throughout the year. Our business client ranges in
size from newly established to billions of dollars in private and public.
AUDIT PROCESS AND CURRENT AND HISTORICAL PROCEDURES
Audit procedures are the steps taken by the auditors to obtain all the information about the financial quality of
the company, which enables them to make financial statements whether they reflect the true and fair view of
the financial position of the organization. They are identified and used in the planning phase of the audit after
determining the purpose of the audit, the scope, method of operation, and the risks involved.
Testing - Testing is the most widely used method. Under this, the auditor looks at the whole process / document
comparing written steps and procedures to ensure accuracy.
Observation - Under this method of audit, the auditor usually attempts to evaluate the performance of others.
For example, the auditor may see the steps to be taken in considering GRN against purchased goods.
Verification - This type is used to verify the accuracy of financial statements from internal auditing sources or
external sources.
Accounting - Under this method of audit, the auditor often skip checking information presented by the client. It
is often used in checking statistical accuracy.
Re-doing - Using this process, the auditor also performs all the client's procedures for obtaining vacancies, audit
findings, etc.
PRACTICAL EXAMPLES OF RESEARCH PROCEDURES
The auditor may review the outstanding balance of the client by adjusting the debtor's aging schedule.
The auditor may compare the same in two different audit periods and draw conclusions. If there is no change in
credit policy, no significant change in sales, the debtor the balance should be almost the same, etc.
Ratio analysis: The auditor may use this method to compare the current rate of variance reporting times while
looking at operating costs. This comparison of current assets / liabilities should be almost the same unless the
entity amends its policies relating to any operating financial assets. An auditor may audit and compare accounts
with employee benefits at different calculation times. This amount must be the same or increased according to
promotional / promotional policies.
Suppose the auditor finds a different reason for the increase / decrease without employee policies or benefits. If
so, there is a chance that counterfeit payments will be processed to fake employees through a pay system.
They assessed all costs in terms of quantity and measurement and actual statistics.
For example, suppose 5KG potatoes for $ 25 / Kg result in 1 KG of potato chips. The auditor should check that
the actual cost should be approximately $ 25 to produce 1 KG of potato chips.
Limitations: With the exception of a few audit procedures used by the auditor, they cannot conclude that the
adjusted financial statements are sound. The auditor expresses an opinion that is always below the limits of the
, audit, which is defined as Human Error.
Despite thorough assessment, there are still opportunities to express an inadequate opinion due to human error
and omission. As always there is someone behind the machine.
Lack of Explicit Accounting Guidelines: The study standards set out a series of steps to be taken during an audit,
but some cases have not yet been defined. Treatment requires consideration in these cases.
Presence of Management Fraud: There may be instances of fraud committed by senior management or in
collaboration with a team of employees. As the auditor makes an opinion based on the shared data being
researched, he may not be in a position to detect such fraud.
Judgments: When preparing a financial statement, there are times when management needs to make a decision
that may differ from one another. With this change of judgments, the auditor may not indicate the exact
location of the business.
Important Points
With changes in the business environment and business models, the auditor needs to confirm changes to the
previously defined audit procedures. Ever since the environment changed, these processes have also become
obsolete. For example, with the increase of automation, the auditor needs to use research methods that keep in
mind the location of the computer involved. Audits without systematic audits may be incomplete and may
create an unqualified audit opinion.
The Audit Procedure is a series of steps / procedures / methods used by the auditor to obtain sufficient audit
evidence to make a statement on the financial statements, that reflect an accurate view of the financial position
of the organization. Especially for two types - important and analytical processes.
According to the risk assessment, the auditor uses the audit procedures. This helps the auditor to plan the audit
and to set a time limit for obtaining the audit evidence. The audit concept is still under investigation.
INTRODUCTION TO THE CODE OF PROFESSIONAL CONDUCT
The Code of Professional Conduct applies to auditor students, graduates and members. Their goal is to ensure
that appropriate professional ethics are followed. They provide basic principles and specific direction
statements. Accounting work plays an important role in society. Awareness of the importance that work brings
to society translates into public trust invested in this project. Our commitment to serve the community is great
Responsibility, however, is the primary quality by which we have created kindness and the good standing of our
work over the centuries. Importantly, the work should continually strengthen and enhances its favors in a
thriving and challenging business and control area. The importance and role of moral action has changed more
and more central. A distinguishing feature of the work of accountancy is its acceptance to social responsibility.
Auditor's responsibility is not just about satisfying the needs of each client or a rental organization. Therefore,
the Code contains requirements as well as application materials so that auditors can meet their needs of social
responsibility.
The auditor will comply with the Code. there may be situations where laws or regulations restrict the auditor in
accordance with certain sections of the Code. In such cases, those rules and regulations that governs the auditor
shall comply with all other provisions of Code.
There are five basic ethical principles
(a) Integrity - truthfulness and honesty in all professionals and business relationships.
(b) Objectivity - not to jeopardize professional or business judgments because of bias, conflict of interest or
improper influence of others.
(c) Professional Skills and Appropriate Care - in:
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