Our Process

We go beyond the minimum requirements of a statutory audit.

When an audit is only treated as a statutory requirement, an external audit provides little value in terms of the development and achieving your organisation’s goals.

Our Audit Planning Process, outlined below, provides information on our approach to meeting and exceeding your service requirements. Key features of our approach:

  • Regular and open communication with management and the Board
  • Continuity of the engagement team throughout the conduct of the audit
  • Direct partner involvement
  • Gaining knowledge and an understanding of the operational issues and the unique business of the organisation (extensive data gathering process)

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Gather Data

  • Management structure, physical locations and principal contacts
  • Economic and industry considerations
  • Financial performance and reporting requirements
  • Management skills
  • Accounting policies and procedures
  • Assessment of inherent and control risk
  • Identification of the users and sensitivity of the financial statements
  • Identifying matters requiring special attention
  • Current financial position (income, expenses, assets and liabilities)

Identify Goals

  • Statutory responsibilities
  • Reporting requirements
  • Client specified requirements

Develop audit strategy

  • Document the overall audit plan
  • Independence and ethical requirements
  • Terms of engagement
  • Client accounting policies and accounting standards and the effect of changes
  • Auditing standards and the effect of changes
  • Identification of significant areas of audit risk
  • Nature and extent of audit evidence to be obtained
  • The setting of materiality levels
  • Areas requiring special attention
  • Degree of reliance on internal controls and management controls
  • The use of experts and internal auditors

System audit

(compliance)

  • Identify and document each system and sub-system
  • Identify and document key controls and audit assertions
  • Confirm the operation of the system
  • Determine the audit sample size
  • Perform testing of the controls
  • Draw conclusion on the degree of reliance which can be placed on controls
  • Report any weaknesses and potential improvements

Balances audit

(substantive)

  • Identify each significant balance and document the determinants of the balance
  • Refer to the outcome of the systems audit which will impact the balance
  • Determine the audit approach which will ensure the overall audit risk remains at an acceptable level
  • Identify specific audit assertions
  • Perform appropriate analytical reviews
  • Determine the nature and extent of further substantive testing
  • Perform testing and draw conclusions
  • Report any weaknesses and potential improvements

Audit conclusion

  • Audit report and opinion
  • Audit memorandum and management letter
  • Presentation of our report
  • Action list for subsequent visits
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