Accounting Audit Concept: Accounting
auditing is a set of technical activities and procedures, performed systematically in an entity, comprising the assessment and examination of procedures and operations performed, with a view to ascertaining the accuracy of accounting records and the reality of operations , and on these issue an opinion.
Objective:
The main objective of Accounting Auditing is to verify whether the financial statements adequately reflect the equity, financial and economic situation of the companies.
To achieve the above objective, the auditor needs to properly plan his work, evaluate the internal control system related to the accounting part and proceed to the analytical review of the assets, liabilities, expenses and revenue accounts, in order to establish the nature, dates and extent audit procedures, and to collect the supporting evidence of the accounting information mirrored in the statements in order to, based on their evaluation, issue an opinion.
Planning the work:
Planning the audit work is extremely important and must invariably consider the scope of the audit to be performed, that is, its scope, with the establishment of goals to make the work as efficient as possible. It presupposes an adequate level of knowledge about the nature of operations, business, the form of organization of the company and applicable legislation, as well as the prior identification of problems to be analyzed.
The planning must consider all the relevant factors in the execution of the work, such as:
- a) the nature, timing and extent of the audit procedures to be applied;
b) the existence of associated entities, branches and related parties;
c) the need to meet the deadlines established by the body itself or by third parties;
d) execution individually or jointly with other bodies.
The planning of the audit work must be documented by the auditor, who is also responsible for preparing written work programs, detailing what is necessary to understand the procedures that will be applied, in terms of nature, opportunity and extent.
The audit programs must be detailed in order to serve as a guide and a means of controlling their execution.
