These are more than a little interesting these days. More and more companies have been able to claim an exemption from audit as the turnover and gross asset criteria have been progressively raised over time. Simultaneously audit regulations have been tightened around the way an audit is planned, structured, documented and reviewed
Here at Eacotts International Limited, we specialise in auditing. It is what we do and are enthusiastic about the way the job is done. The Eacotts constitution talks about creating accumulating and maintain wealth for our clients and we keep this in mind throughout the audit process.
The audit program used to be a few sheets of paper with some tests written down that needed to be carried out. Today there are tailoring questions for the program, and the program is constructed by an audit electronic engine after carrying out inherent risk and audit area risk assessments. The sample sizes we use for our tests and the materiality for judging the significance of issues or transactions are both set initially by the software we use and are presented to the audit team for agreement or on occasion for their adjustment where circumstances warrant.
There will be a planning meeting prior to the audit field work which all members of the team will attend including the Senior Statutory Auditor who will sign the Audit Report at the end of the process. The accounts will be prepared quite separately from the audit and management will sign these accounts as those presented for audit. There will be a review of the threats to our independence as part of the planning process and we will inform you prior to the start of the audit what safeguards we have put in place to cover these off. Threats might include Self Interest, Self Review, Familiarity, Advocacy or Intimidation.
When the field work is at an end, in a way the real audit starts, the account manager first and then the Senior Statutory Auditor will review the accounts knowing that a mistake or an oversight regarding any one transaction or disclosure might mean that the accounts will not show a true and fair view. This review will be a large part of the audit and will not be completed quickly. It is pressure for the Audit Senior too as their file is reviewed and explanations are demanded for omissions or where the file is unclear.
Finally after all adjustments have been made and all review points cleared, there is one final check with management for any events which might have occurred to change the accounts presented for audit and the Audit Report is signed.
If Eacotts International Limited is not yet your company’s auditor, why not call us right now and allow us to help you create accumulate and maintain wealth.