There are many influences on how an actual audit is
conducted. These include:
conducted. These include:
·
International
standards on auditing. These have to be complied with
International
standards on auditing. These have to be complied with
·
Professional
body rules these are now very extensive.
Professional
body rules these are now very extensive.
·
Legislation-for
companies this is the companies act 2006 but most enterprises seem
to be
affected by some legislation or other. We live in a much regulated age.
Legislation-for
companies this is the companies act 2006 but most enterprises seem
to be
affected by some legislation or other. We live in a much regulated age.
·
The terms
of the engagement
The terms
of the engagement
·
Codes of
practice-some audits are influenced by codes of practice, local authorities are
an example.
Codes of
practice-some audits are influenced by codes of practice, local authorities are
an example.
·
The level
of audit risk. Risk permeates all auditing. Risk arises due the nature of the
organization and its management, the quality of the internal controls within
the organization and the ability of the auditor to perform the audit in such a
way that any material errors or misstatements which evade the company’s
procedures will be detected by the audit work performed.
The level
of audit risk. Risk permeates all auditing. Risk arises due the nature of the
organization and its management, the quality of the internal controls within
the organization and the ability of the auditor to perform the audit in such a
way that any material errors or misstatements which evade the company’s
procedures will be detected by the audit work performed.
·
The
possibility of some fraud or misrepresentation which is committed with
collusion by staff or management.
The
possibility of some fraud or misrepresentation which is committed with
collusion by staff or management.
·
The
quality of audit evidence.
The
quality of audit evidence.
·
Fear of
litigation-actions under the law of tort to recover losses alleged to be caused
by the negligence of auditors, if successful can be very expensive for auditors
in terms of cost, time and loss of clients and reputation
Fear of
litigation-actions under the law of tort to recover losses alleged to be caused
by the negligence of auditors, if successful can be very expensive for auditors
in terms of cost, time and loss of clients and reputation
·
Ethics-ISA
200 requires that in the conduct of any audit of financial statements auditors
should comply with the ethical guidance issued by their relevant professional
bodies. These guides are now fairly extensive relevant matters include
integrity, objectivity, and independence, professional competence, due care,
professional behavior and confidentiality.
Ethics-ISA
200 requires that in the conduct of any audit of financial statements auditors
should comply with the ethical guidance issued by their relevant professional
bodies. These guides are now fairly extensive relevant matters include
integrity, objectivity, and independence, professional competence, due care,
professional behavior and confidentiality.
The individual auditing manual of the form of auditors. These may be
influenced by quality control standards
