Examination techniques for organisational auditing

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Examination techniques for organisational auditing

Suhana Ismail Financial Audit A financial audit involves an examination of financial planning and reporting process, the conduct of financial operations, the reliability and integrity of financial records, and the appraisal of the controls relating to financial functions.

A financial audit is performed before the release of the financial statements typically on an annual basisand will overlap the year-end the date which the financial statements relate to. Generally a financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion.

The Examination of Financial Planning and Auditing Reports The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements.

These will include the six steps of financial planning process as below: The examination in every steps in the financial planning and reporting process is important to ensure that the role of internal audit outlined in the internal audit strategy considers the views of all stakeholders. Therefore, every steps must be done properly according to organization goals, policies and procedure and also the laws and regulations.

The Conduct of Financial Operations There are few audit process and techniques use for collection and accumulation of audit evidence, certain methods and means generally adopted by auditors are: The objective of an audit of financial statements is to express an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and cash flows in conformity with generally accepted accounting principles GAAP or other applicable financial reporting framework.

Therefore, while performing a financial statement audit, the following must be clarify by the auditor: The Reliability and Integrity of Financial Records It is clear that the concept of reliability is of real interest to a wide variety of audit stakeholders.

Auditors should take steps to address the robustness of audited financial statements. Auditors should therefore be concerned about broader aspects of organisational reliability.

Integrity in relation to financial statements is the result of both the integrity of those involved in preparing the financial statements and the robustness of processes by which financial statements are prepared.

It involves several aspects and each one is just as important as another. When integrity exists in all phases of the auditing process the result is an audit that exhibits accuracy, completeness and honesty.

Examination techniques for organisational auditing

Conversely, these are key ingredients to have integrity in the audit process. There are the preparation phase, performing phase, report and follow-up. All of these activities are important and each must have integrity when performing them. The purpose of this article is to present information, which signifies how audits must have integrity and the impact when they do not.

Integrity in the decision to audit is critical. This decision must be based on an honest evaluation of the facts and circumstances. For example, today many companies in the U. Therefore, with commitment to reliability and integrity in financial records and reports, Internal Auditing provides value and trust to stakeholders as an independent source of objective advice.

In conclusion, we can agree that financial auditing is an accounting process used in business to examine a business' financial transactions and statements. The ultimate purpose of this form of auditing is to present an accurate account of a company's financial business transactions.

The practice is used to make sure that the company is trading financially fairly, and also that the accounts it is presenting to the stakeholders are accurate and justified. These people own the organisation but, in many cases, will not be closely involved in its day to day running.

Depending on the organisation being audited, the outcome of an audit process may be interesting to a whole range of other stakeholders, such as politicians, journalists and the general public.- This will include an examination of techniques for organisational auditing and for analysing external factors that affect marketing.

- Carry out organisational auditing and analysis of the external factors that affect marketing planning within Hyatt Hotels. Conducting an Organizational Audit Background and Guiding Questions I. General Areas of Inquiry Weisbord () provided a framework for organizational diagnosis that might be a useful if you are starting from a general sense that "things could.

Organisational Planning and Control S1 Day Dept of Accounting & Corporate Governance Contents Explain key management accounting concepts and techniques and be able to apply • Accounting, Auditing and Accountability Journal.

Institute of Risk Management International Certificate in Enterprise Risk Management (ERM) including how they may be affected by organisational culture and appetite for risk.

environment and how auditing and other risk assurance techniques fit within the risk management framework. Contents. AUDITING AS AN INSTRUMENT FOR ORGANIZATIONAL SUCCESS (A Case Study Of Anamco Ltd.

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Online courses The audit must be independent and, in order to ensure the independence of the internal auditor from the auditee, a possible solution is to use auditors from within the organisation, e. Internal audits of the OSH management system are conducted in order to determine whether the management system complies with the functioning plan for OSH management, with respect to legal requirements or to standards and to review and evaluate the performance and effectiveness of OSH MS.
Further reading About audits What is an audit?
Confirmation Role and scope of an IA[ edit ] In much the same way as the IA is difficult to define, it can be utilised in a range of contexts by the information professional, [5] from complying with freedom of information legislation to identifying any existing gapsduplications, bottlenecks or other inefficiencies in information flows and to understand how existing channels can be used for knowledge transfer [6] In Buchanan and Gibb developed upon their examination of the IA process by outlining a summary of its main objectives:
1 What is environmental auditing? Analytical Procedures Techniques of Auditing Audit techniques stand for the methods that are adopted by an auditor to obtain evidence.
Learning outcomes Next Page Evidences are very important for an Auditor to form an opinion regarding financial statements. If Auditor fails to collect proper evidence, it will reduce the reliability of audit report.

The information audit (IA) extends the concept of auditing holistically from a traditional scope of accounting and finance to the organisational information management system.

Information is representative of a resource which requires effective management and this led to the development of interest in the use of an IA.

Audit Technique Guides (ATGs) for Exempt Organizations | Internal Revenue Service