Definition of Auditing

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DEFINITION OF AUDITING
Auditing is described as the independent examination of and expression of an opinion on the financial statements of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation. Thus auditing of information systems can be defined as independent examination of and expression of an opinion on the development, documentation and controls of information systems of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant company requirement. The purpose of an audit is not to provide additional information but rather it is intended to provide the users of the systems with assurance that the information
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The auditor seeks to obtain some background information of the nature of the client’s business. * Planning the audit; the auditor prepares a planning memorandum that shows the general strategy in to be followed in conducting the audit. * Ascertaining and evaluating clients accounting systems and internal controls, use of flow charts and evaluating using key questions. * Carrying out tests of controls: This enables the auditor to determine the level of reliance to be placed on the internal control system and therefore reduce the level of substantive testing. * Planning the level of substantive testing and formulating the substantive tests to be carried out. * Carrying out substantive testing on the selecting account balances. * Carrying out the final analytical review and concluding whether the financial statements show a true and fair view. * Drafting the audit opinion and any other reports to be issued under the terms of engagement e.g. the management letter.

RIGHTS OF AUDITORS 1. Rights of access at all time to accounting records of the company. This includes;

a. Rights of access to statutory books of accounts e.g. shareholders register, memorandum of association and minutes of important meetings. b. Access to returns from branches and vouchers of the company.

2. To require from officers and employees of
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