quyet

Get knowledge in T8, I think we must answer at least 3 questions when finishing learning.

What is audit?
An exercise that auditors carry out in order to be able to give the statutory opinion whether financial statements give a true and fair view

Why you need audit?
Responsibilities of auditors
External auditors:
• maintain an attitude of professional scepticism through the audit
• recognise the possibility that a material misstatement due to fraud could exist
Internal auditors:
• help to prevent fraud by assessing the adequacy and effectiveness of control systems and detect fraud by being mindful when carrying out their work
• report any suspicious

How you audit? Audit procedure
Stage 1: The scope of the audit and the auditors' general approach should be determined
A letter of engagement
An audit strategy
Understand the entity (include: documenting and confirming the accounting systems and internal control)
Stage 2: to obtain information to enable the auditor to assess the risks of material misstatement in the financial statements
Stage 3: to determine the flow of documents and extent of controls in existence
Stage 4: to prepare a comprehensive record for use in evaluation of the systems
Stage 5: to confirm that the system recorded is the same as that in operation
Assess the risk of material misstatement
Stage 6: Evaluate the system to assess their reliability and formulate a basis for testing their effectiveness in practice
Select audit procedures to respond to risk of material misstatement
Stage 7: Tests of controls if Stage 6 is effective ~> Full substantive procedures (Stage 9)
Stage 8: Report to management
Stage 9: Substantive procedures
Review the financial statements
Stage 10: to determine whether the financial statements are consistent with auditor understanding of the business and audit evidence obtained, and comply with accounting regulations
Express an opinion
Stage 11: Report to the member
Stage 12: Report to management

janish

quyet..wish all the best to u..