What control should the auditors maintain over the external confirmation procedures?
Table of Contents
What control should the auditors maintain over the external confirmation procedures?
to those requests. Control is maintained over communications between the intended recipients and the auditor to minimize the possibility that the results of the confirmation process will be biased because of the interception and alteration of confirmation requests or responses.
Why do auditors prepare management letters?
The Management Letter is intended to provide management and those charged with governance with valuable information regarding their organization. Used properly, the Management Letter can be a beneficial tool for assisting management or those charged with governance in fulfilling their responsibilities.
What does it mean to maintain control over the confirmation requests and responses?
Maintaining control fn 3 means establishing direct communication between the intended recipient and the auditor to minimize the possibility that the results will be biased because of interception and alteration of the confirmation requests or responses.
When the auditor does not receive a response to the positive confirmations possible procedures include?
31. When the auditor has not received replies to positive confirmation requests, he or she should apply alternative procedures to the nonresponses to obtain the evidence necessary to reduce audit risk to an acceptably low level.
How do you prepare for an external financial audit?
5 Tips To Prepare For Your External Audit
- Understand the Standard.
- Identify Your Subject Matter Experts (SMEs)
- Allocate Resources to the Experts.
- Determine Your Internal Procedures.
- Gather Documentation for Your Procedures.
- Define Your Objectives.
- Announce the Audit.
- Conduct an Audit Entrance Meeting.
Why and when does the external auditor present a management letter?
A management representation letter is a form letter written by a company’s external auditors, which is signed by senior company management. The letter attests to the accuracy of the financial statements that the company has submitted to the auditors for their analysis.
How do I request a bank confirmation?
To obtain a bank confirmation letter from your bank you may request in-person at a bank branch from one of the bankers, by a phone call to the bank, and depending on the financial institution, through their online platform.
What should you not expect an external auditor to do?
For a clear picture of the role of external auditors, it helps to understand what you should not expect auditors to do. The emphasis is on “independent.” First and foremost, auditors do not take responsibility for the financial statements on which they form an opinion.
What information should an auditor seek from a potential client?
Seek references about the status of the company and its management. Such references will assist the auditor in assessing the potential risk in associating with this new client. Information sought would include the reputation of the company and its directors. Communicate to present auditor.
What procedures should an auditor take before accepting nomination?
Upon receipt of a request to accept appointment as auditor of an organisation the auditor should carry out the following procedures before accepting nomination. Before. Ensure he is professionally, legally and ethically qualified to act as an auditor.
How to communicate with the outgoing auditor?
Request permission before hand to communicate with the outgoing auditor, if not granted decline the nomination. Purpose of communication. Initiative rests with the new or incoming auditor the existing auditor should not volunteer information. It enables all relevant fact to be known by the member before he accepts nomination.