Audit Process and Assurance Engagements | Module Learning Outcomes

To develop knowledge and understandings of the audit process and its application in the context of the professional regulatory framework.

1. Assess the nature, purpose and scope of assurance engagements, including external and internal audits within the regulatory and ethical framework

2. Identify and evaluate audit risk, control risk and their potential consequences

3. Evaluate internal controls and information systems and determine an appropriate audit approach

4. Determine an appropriate Audit plan for an entity ensuring that it meets the objectives of audit engagements and the application of International Audit Standards

5. Evaluate audit findings and assess the appropriateness of the different types of audit approach.

Select a company or other organisation that you wish to audit. In relation to your chosen company or organisation write a report critically analysing the differences between the Internal Audit and External Audit. As part of your report

1. Objectives of the audit and why they are necessary and for whose benefit . 20

2. Report on the structures that can be put in place to ensure they are a fair and true reflection on the company’s performance. What are the consequences of a bad audit and who should be advised. 15

3. Detail the scope of the audit procedures and management both internally and externally. What are the audits and assurances guarding against and how material is it. 20

4. Discuss the relationships with the actors interested in the outcome of the audit. 15

5. Show any limitations or risks contained within both systems – IA ( Internal Audits) and EA ( External Audits). 25

6 Harvard Referencing and layout

Critically analyse the objectives around the audit and for whose benefit it is for and show how essential an audit is in giving a true and fair assessment of the company at that particular date.

Detail simply any immediate and obvious concerns you may have before starting the audit. What are the different structures you would put in place and their reliance on each other from an internal management and an external perspective. How will the incoming audit team be able to scope out any issues for the shareholders and other interested partners. Both audit teams should both have the same end goal unless there is something that is being overlooked or hidden.

Show how the internal team can provide most of the groundwork. Once your audit procedures are in place they will need monitoring both during the audit and afterward according to the recommendations of the external team. Define who will be responsible for the instigation of your procedures and note what action needs to be taken, and why, if your procedures are not followed. Define what actions are open to the shareholders and other interested parties if the audit is not done properly and your procedures are not robust enough or adhered to. What is a “bad” audit and what are both the legal and internal consequences likely to be. At the conclusion of your report detail any ongoing concerns you make have and the risks associated with the audit not being completed or referred.