Balanced Scorcard

Audit Risk Assessment can be done by this Audit Risk Model. This model consists of 3 types of risks i.e., inherent risk, control risk and detection risk. Eventually, audit risk is a product of these 3 types of risks (Griffiths, 2012).

Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences

Furthermore, when the internal control is fixed, the outside auditor can rely on the clients system and less audit testing can be conducted. When everything is improved, the management letter is given to the organization’s top management and not disclosed to the public, (Finkler, S. A., Ward, D. M., & Calabrese, T. D., 2013). Next, is the auditor’s report that entails the opinion letter usually written in three paragraphs and given to the board of trustees. Then, the opinion paragraph is added on to state the organizations financial statements are in accordance of the financial position and followed through with (GAAP). The clean opinion addresses the opinion of the auditor and the overall exercising of professionalism. Also, the complete opinion of the financial statements is to give a representation of the organization. All other opinions may be included and can be addressed by adverse opinions if (GAAP) was not in accordance. A qualified opinion can be added if a specific area wasn’t included in the financial statement when needed. Finally, the management reports are conducted by the management team and not the auditors. The management report is the annual report the topics included in the report are the internal control system and the responsibility of the audit committee.

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and

The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation and criticisms of its theoretical foundation, the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the nature, timing, and extent of audit procedures (especially substantive procedures) in audits of financial statements. The audit risk model provides a conceptual framework for the risk assessment standards.

Section 404. Management assessment of internal control: This section needs every annual report of a in public listed company to contain internal control report stating management’s responsibility to establish and maintain an adequate system of internal control financial reporting similarly as an assessment of the effectiveness of internal control structure and procedures. Auditors audit the financial statements of the company must issue a consulting report regarding the effectiveness of the company internal

To evaluate risk management effectiveness and policies compliance in a company, auditing is introduced as an independent, assurance and a consultative activity.

Section 1 2 3 4 Introduction and Assessment Outcomes and Criteria Internal Controls and Fraud Finding weaknesses and making recommendations Business English Report Plan Deadlines Report Guide Other requirements page 3 6 9 12

The nature of the international standards presents a framework for promoting and performing a wide range of value-added auditing. The standards constitute statements of basic requirements for the practice of the profession. The standards are focused on principles and are globally applicable both at the organizational and individual level (Stewart and Subramaniam 330). They also comprise of interpretations that clarify the technical concepts or terms within the statements. Furthermore, the structure of the standards is categorized into attribute and performance standards. The standards on attributes focus both on the organizational attributes and those of individuals conducting the internal audit. On the other hand, performance standards define the nature of internal auditing and provide a quality metric for measuring the performance of these services. These performance and attribute standards are applicable to all internal audit services.

A. It is extremely important to ensure that the auditing profession meets its responsibilities to its clients. While working for a company to audit their financial information, they are also at the same time working for the public and regulators who rely on externals auditors to prove credibility to the financial information that companies release (Cooper, Coram, Richardson, & Leung, 2009). To assist in quality assurance, the profession, and government have developed multilevel framework which is designed to regulate the audit profession. This framework includes:

Audit planning is a process that entails designing a road map to be followed when conducting an audit. It also extends to identifying the specific guidelines to be adhered to direct the audit direction in the most professionally way. It can be established that are various guidelines that guide the audit depending on whether it is internal or external. Notably, external audit is guided by various standards, which require financial information to be prepared in a specific way as stipulated by various standard setting bodies. Therefore, in audit planning each body has distinct guidelines to be followed in accordance to the jurisdiction’s accepted accounting principles. An analysis of three audit-planning standards: AICPA (American Institute of Certified Public Accountants), PCAOB (Public Company Accounting Oversight Board) and IAASB (International Auditing and Assurance Standards Board)reveals characteristic similarities and differences, which have an overall impact on the performance of the audit.

An external auditor carry out the audit work，according to particular rules or laws of the financial statement corporation, government agencies, other juridical entity, as well as the independent implementation of the audit commissioned. External audit is actually an important systematic inspection, which aim at false behavior within the enterprise and deceptive behavior. The advantage of external audit is to ensure the fairness and independence of the audit. However, the external auditors do not understand the internal organizational structure, production processes and operating characteristics, So difficulties may arise in the audit of the specific business. Non-audit services refer to other authentication services, consulting services and other services other than audit services. This essay will discuss whether the provision of non-audit services by external audit firms is advantageous or disadvantageous, and explain how regulators can reduce the threat posed by such regulations.

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.

This article initiates with the introduction on what is audit planning. It basically addresses the audit plan strategy of K & S Corporation limited’s Financial Statements. Being an external auditor of the company, key factors to be considered in auditing the financials of the subject company have been discussed in the article. The most significant accounts at risk being materially misstated have been critically examined citing the possible risks associated with such accounts. Last but not the least, the article concludes with recommendations with respect to audit assessment plan of the company. Hence, this article seeks to act as a ready reckoner guide for an audit manager in audit planning of K & S Corporation Limited.