There are three types of reporting assignment, of
which an audit is the most common accountants carry out.
which an audit is the most common accountants carry out.
Statutory audits
These are audits carried out because the law requires
them. Statutes which require audits to be done include the companies act 2006
and the financial services and market act 2000.
them. Statutes which require audits to be done include the companies act 2006
and the financial services and market act 2000.
Internal audits
Internal audits are conducted by employees of a
business or by external auditors acting as subcontractors. They are becoming
increasingly important because of the development of corporate governance.
These differ from statutory audits because the priorities are set by the
management who, to some extent, control the work of internal auditors.
business or by external auditors acting as subcontractors. They are becoming
increasingly important because of the development of corporate governance.
These differ from statutory audits because the priorities are set by the
management who, to some extent, control the work of internal auditors.
Other assurance assignments
These are enquires into specific aspects of an enterprise-management,
value for money, environmental matters etc. in recent years auditors have
become involved with areas which take them away from their role as reporters an
financial results. Two of the areas of emerging significance are value for money
auditing and audits relating to environmental and social matters.
value for money, environmental matters etc. in recent years auditors have
become involved with areas which take them away from their role as reporters an
financial results. Two of the areas of emerging significance are value for money
auditing and audits relating to environmental and social matters.
In addition, auditors are asked to carry out specific
‘one-off’ assignments such as:
‘one-off’ assignments such as:
·
Reporting on a prospectus for a share issue.
Reporting on a prospectus for a share issue.
·
Carrying out a fraud investigation.
Carrying out a fraud investigation.
·
Reviewing systems and procedures.
Reviewing systems and procedures.