The audit is managed like a project and involves different stages. The leadership of companies and those responsible for leadership play a crucial role at all stages.
Acceptance / continuation of activity
At this point, the auditor should investigate, obtain information and decide whether to continue.
Their opinions are defined by reference to international auditing standards, other regulations, codes of conduct and ethics.
There is insufficient management to support this stage, especially when it comes to meeting auditors.
Providing information and responding promptly to issues of interest, which should be reviewed by management to maintain accuracy and completeness until relevant information is returned to auditors.
Planning
The auditor plans the audit actions at both a general and a detailed level.
Management may provide the auditor with information on corporate decisions, their systems performance, design (accounting and operating) and internal control mechanisms.
Execution (performing the audit)
At this stage, the audit team collects audit evidence of the financial statements itself.
Evidence can be presented in many forms, such as original documents as well as process observation documents, information analysis, expert work verification, physical verification, etc.
Management can accelerate this phase by requesting information, auditing questions and answers from the project lead auditor.
The documentation provided is complete and accessible to key personnel.
Assessment, conclusion, and report
At the final stage of the audit, the auditor evaluates the evidence and identifies errors to identify issues that may affect the audit opinion.
Here again, we need to mention the internal processes that the company should follow these issues.
If all this is well documented, it may prove to be an important adjunct to audit effectiveness.
In conclusion, the effectiveness of the audit is enhanced by the timely information provided by the client, perfecting the results of the procedures performed to perform the audit tasks.
This may affect the amount of time required for the auditor’s work or information to be completed.
As well as the quality of your answers to the questions asked by the auditor, and may reduce the auditor’s remuneration.
One thing to note about budgeting is always wrong, with many large companies preparing their budgets in August and September of the next calendar year.
Even in January, in the first month of the year, this budget is already outdated. By December it is already irrelevant.