Types of audit risk

There are three types of audit risk. These types of audit risk include inherent risk, control risk, and detection risk. 1-Inherent risk The nature of … Read more

Tracing vs vouching

Tracing vs. vouching

Tracing and vouching play a number of similar roles in auditing, but the key difference is the use of these auditing procedures to collect audit … Read more

AUDIT PROGRAM

What is an audit program?

Definition The audit program is a detailed action plan for the audit team. It sets a direction for an audit team to perform audit procedures. … Read more

Qualities of audit evidence

Auditors collect audit evidence during fieldwork. If audit evidence is sufficient and appropriate, they issue a clean audit report. Sufficiency of audit evidence refers to … Read more

Audit report modification/changes

Audit report modification is when auditors need to change/modify their audit opinion. The audit report can only be changed/modified in line with the accounting standard. … Read more

What is audit report?

The audit report is a document attached with the financial statement. In this report, external auditors state their opinion about the financial statement prepared by … Read more

going concern

What is going concern assumption?

Definition Going concern assumption is used by businesses to prepare the financial statement. This assumption impacts the accounting treatment, valuation, and presentation of various account … Read more

AUDIT ASSERTIONS

What are audit assertions?

Definition Audit assertions are claims made by management that financial statements are accurate and do not contain any errors. Here, auditors’ work begins and they … Read more

audit procedures

What are the audit procedures?

Definition Auditors perform audit procedures to obtain sufficient and appropriate audit evidence on the identified risks. Generally, auditors understand business, assess the risk of material … Read more

audit scoping

What is audit scoping?

Definition Audit scoping refers to the process of setting extent, nature, and timing of audit procedures to be performed. The scope of auditing is dependent … Read more