Audit Essays

  • Audit Information System Audit

    1602 Words  | 7 Pages

    IT audit is examining and evaluating the organization’s internal information, technology infrastructure, policies, regulations, and operational functions. Thorough examination with the use of IT audit allows assessment of system’s internal controls and provides assurance that statements are error-free and reliable. Proper use of IT audit help auditors in determining the corporate assets, data to be effectively aligned with the overall terms and goals of the business in terms of CIA (confidentiality

  • Disadvantages Of Internal Audit

    1028 Words  | 5 Pages

    Internal governance audit in listed companies Board of Directors of internal audit: internal audit with supervision, evaluation, control and other functions, internal audit is not just supervision, but also to help operators to strengthen control, improve management, improve operational efficiency. The establishment of the board of directors under the leadership of the internal audit system, the establishment of a new audit commission relationship, through the internal audit to achieve re-control

  • The Importance Of Audit

    1223 Words  | 5 Pages

    Audit aims to increase credibility, reliance and dependence of corporate bodies by the use of mechanisms to construct a system of checks & balances for entities for the purpose of credibility for external users of information. However, in recent times, we have seen audit failures that instead of increasing reliability of consumers have failed to accomplish what audit committees and boards stand for and instead have been confronted with a crisis of confidentiality and confidence. Audit failure occurs

  • Audit Ethics In Earning Management

    940 Words  | 4 Pages

    companies. 2.5 Audit Opinion (AO) and Earnings Management (EM) Relationship. To produce a high quality audit opinion report. Auditors need to be an independent person. Independence in mind which is the auditors needs to perform an unbiased attitude, and also independence in appearance which is the auditors is prohibited to have any relationship with the client. Thus, how auditor’s response to the EM has been the issues here. Auditors play an important role to produce a high quality audit in order to

  • The Importance Of Audit For Small Business

    2022 Words  | 9 Pages

    Audit is examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization) or externally (by an outside firm). For many enterprises, the annual statutory audit is required by law. Recently, however, the trend in European Union has been towards an exemption from the audit requirement for smaller companies. Audit is an important way to increase confidence in the information and thereby enhance confidence and stability in the economy

  • Walk Through Audit Analysis

    1123 Words  | 5 Pages

    The general nature and purpose of a “walk-through” audit procedure. The walk-through procedure used by auditors as a tool that most, annual risk assessment procedure and it is stated in the auditing standards. The walk-through procedure performed via tracing out data and documents that can be found in the financial reporting system from the commencement of transaction cycles until termination of a company operating activities. The main aim of this procedure is to provide a good understanding of the

  • Audit Evidence Effectiveness

    1414 Words  | 6 Pages

    Appropriateness of audit evidence Sufficiency is the measure of the quantity of audit evidence meanwhile appropriateness is the measure of the quality of audit evidence. Because of this, its relevance and reliability in providing support for, or detecting misstatements in, the classes of transactions, account balances, and disclosures and related assertions. When assessing risks and designing further audit procedures, the auditor should consider the sufficiency and appropriateness of audit evidence at the

  • Professional Skepticism In An Audit

    1174 Words  | 5 Pages

    Throughout the period of the audit, assignation PCAOB describes professional skepticism as a general duty of care that needs to be applied by the examiner. Professional skepticism is when someone has a questioning mind that involves a critical assessment and analyzes of audit evidence. It is primordial for an auditor to exercise professional skepticism when conducting the audit of financial statements. In other words, an auditor must refer to quality and credible reference. The auditor needs to question

  • Importance Of Internal Audit

    2184 Words  | 9 Pages

    ABSTARCT/PURPOSE – This paper critically analyses the independence of the internal audit function through its relationship with management and the audit committee. Given the growing role of internal auditing in contemporary corporate governance and independence has gained renewed attention. INTRODUCTION The role of internal audit is to provide independent assurance that an organization’s risk management, governance and internal control processes are operating effectively

  • Effectiveness Of Internal Audit

    1572 Words  | 7 Pages

    results of an audit in accordance with generally accepted auditing standards. AICPA (2002) states that independence can be generally defined as freedom from dependence on, or influence or control by another person, organization, or state. For internal auditors, independence is the freedom from conditions that threaten the ability of the internal audit activity or the chief audit executive to carry out internal audit responsibilities in an unbiased manner. Without independence, internal audit simply becomes

  • Five Major Types Of External Audit

    1867 Words  | 8 Pages

    should be examined as part of an external audit? Give an example of each type of force. 1- Economic Forces 2- Social and Cultural Forces 3- Political, Governmental and Legal Forces 4- Technological Forces 5- Demographic Forces Introduction Before we discuss the five major types of an external forces that should be examined as a part of an external audit: 1- The definition of the external audit External Audit Definition An external audit, defined as a company audit which is performed by a party which

  • External Audit Case Study

    2075 Words  | 9 Pages

    Detection of Fraud in External Audit Introduction: Financial statement users such as investors, regulators and other stakeholders expect external auditors to detect frauds in financial reports of organizations. There are various auditing standards and guidelines issued by various regulatory authorities in order to outline responsibilities of an auditor in detecting frauds. Still, we had corporate downfall of companies like Enron(2001) who was awarded by Fortune Magazine as “America’s Most Innovative

  • Internal Audit Literature Review

    1719 Words  | 7 Pages

    Purpose The purpose of this literature review is to determine and discuss the factors of internal audit effectiveness. The factors being, the Institute of Internal Auditing standards along with characteristics of the internal audit, quality internal audit and internal audit theories. 1. Institute of Internal Auditors Standards along with characteristics of the internal audit team 1.1 Compliance with standards Compliance with Institute of Internal Auditing Standards has great influence on the effectiveness

  • Jordan Audit Case Study

    1343 Words  | 6 Pages

    All Cases are Extracts from Academic Papers Case1: Fraud Risk Factors and Audit Program Modifications: Evidence from Jordan Introduction The purpose of this paper is to survey the views of Jordanian auditors about the fraud risk factors that are more important indicators of the possibility of financial statement fraud, and the modifications to audit programmed that are necessary in the presence of each of the selected fraud risk factors. The results are then to be discussed as to whether the characteristics

  • Outlier Detection In Audit Logs

    2097 Words  | 9 Pages

    Abstract—Information security policy demands auditing for the high performance databases so as to make sure data integrity. Database audit logs contain the information about database operations which are helpful to verify accuracy, lawfulness and to report risks. In financial systems, the audit logs should be monitored on continuous basis in order to detect and take action against any reasonably abnormal behavior. Outlier detection is a very important concept in the data mining which is useful in

  • Examples Of Resolving Audit Issues

    1164 Words  | 5 Pages

    Resolving Audit Issues One of the experts noted that auditors fail to effectively pass on information within the audit team. A lower-level auditor may identify information such as a transaction that may indicate fraud exists but then not effectively share the information with someone with the expertise to identify it as a fraud cue. Two experts indicated deficiencies in resolving issues that arise with one noting that auditors fail to effectively resolve issues and conflicts with the client. Conclusion

  • Internal Audit Critical Analysis

    1080 Words  | 5 Pages

    A Critical Analysis of Independence of Internal Audit Function Abstract: Internal Audit Function has played in vital role in the organizations in the modern world. Internal audit functions helps in depicting out the fraud and errors that are created in the financial reports of the enterprise which creates risks for the organization. Henceforth, comes in the auditors responsibilities to carry out their relevant procedures

  • Enron Audit Case Study

    798 Words  | 4 Pages

    (Bratton, 2002). The Enron scandal in 2001 that resulted in the collapse of its auditor, Arthur Andersen, had the public starting to question the ethics and integrity of the financial audit process, where before this scandal it was assumed that the ethical and legal liabilities or even the reputational concern would have prevented the auditors from colluding with their

  • Audit Institution In Malaysia Case Study

    892 Words  | 4 Pages

    INTRODUCTION Audit institution in Malaysia has already existed since the British colonial period in early 19th century. When Malaysian Federation secured independence in 1957, Office of Auditor General of Malaysian Federation was established. Position of State Audit (JAN) Malaysia was formed based on Article 105 of Federal Constitution and the Audit Law 1957 with a mission to conduct audit professionally and independently to the implementation of state finance and produce a balanced report to the

  • Auditor Case Study

    848 Words  | 4 Pages

    Abstract The purpose of this article is to discuss and determine what are the function and effect of competence and independence of auditor on the audit quality. In the other word, there should be the relationship and interaction among competence and independence of auditor as well as the audit quality. First of all, it is known that competence of auditor is referring to the individual characteristics and abilities which contribute the effects on the success and the actions to be taken for any circumstances