Audit Procedures and Financial Statement Examination

Posted on Feb 10, 2025 in Business Administration and Innovation Management

Audit Procedures: Key Concepts and Definitions

  1. Serving Files: File Ongoing or Permanent Audit? Subsequent audit support and help avoid duplication of *cedulas* (audit working papers) and evaluate.
  2. Organic Structure: Does it serve our current job roles? Be a test of opinion in the report, back it up, and determine the efficiency of the work.
  3. Primary Cedula: The one that contains information in aggregate form: figures, procedures, and observations/conclusions for a group or number.
  4. Concept of Analytical Cedula: Describing the audit process developed or applied to items that have been selected for review and testing.
  5. Sub-analytical Identification Card: To analyze in greater detail and explain some concept, or other additional concepts.
  6. Describing the Distribution Cedula: Clearly describes the distributions that are considered necessary in relation to the outcome.
  7. Using the Distribution Cedula: To improve their operating systems administration.
  8. Conceptual Framework Cedula: Helps the auditor to make known the purpose, scope, work plan, strategy, and any other resources that are relevant.
  9. Audit Cedulas Must Have: Completeness, understandability, easy to read format, and objectivity.
  10. Header of a Cedula: Includes identification data such as the name of the area, item, procedure, and type of identification card.
  11. Body of the Cedula: Contains the result of the revision, items, and the conclusion obtained.
  12. Notes at the Foot of the Cedula: Source of data, audit marks, and the signature of the auditor.
  13. Audit Indices: Key to work on each document in the files.
  14. Distinction of Classification Indices: Indicate in the upper right corner with a red pencil.
  15. Indices Should Be: Alphanumeric, taking a logical and flexible approach.
  16. Background of the Review: Documentation that can be used to meet, plan, and direct.
  17. Final Report Includes: The result of the audit and the comments.
  18. Meaning of the Index of Personal Services: The revision of the organization and procedure manual, personnel control, records, verification of payments, and functional structure.
  19. Object of Procurement: The analysis of functions and activities within the field of purchasing, and inventory checking.
  20. Payments and Services Included in Public Works: Documentation of the authorization and implementation of the budget allocated to this activity.
  21. Reviewing Funds and Securities: Areas of accounting, treasury, and budget.
  22. Special Case Functions: Revision of documents that were not considered.
  23. Contents of Tracker Cedulas: Observation that is monitored, actions performed, the auditor’s opinion, and the date they are considered compromised to resolve the irregularities.
  24. Audit Marks: Signs noted by the auditor to identify or highlight a fact or evidence.
  25. Public Accountant’s Responsibility to Examine Financial Statements: Express an opinion about whether the financial statements present, or not, the position of the company in accordance with accounting principles.
  26. What to do Before Giving an Opinion: Have undertaken a review of accounting and business records in detail.
  27. What a report should contain: What has been done and how it has been done, and that a review of the Financial Statements has been performed.
  28. Contents of an Auditor’s Report: The opinion of the auditor on the Financial Statements of the company’s position.
  29. Detailed Report Addressed to: The manager or board of University management of the company.
  30. Detailed Report Content: History of the company, scope of examination and opinion, comments about the items in the Financial Statements.
  31. Condensed Report Addressed to: Shareholders, stock exchanges, and the general public.
  32. What is Disclosed in the Condensed Report: What the auditor has considered precise.