DUY TAN UNIVERSITY INTERNATIONAL SCHOOL INTERNSHIP REPORT TOPIC COMPLETE THE AUDIT PROCESS FOR THE ITEM COST OF GOODS SOLD AUDITED FINANCIAL STATEMENTS AT THE FAT AUDITING AND FINANCE COMPANY LIMITED.
THEORETICAL BASIS OF AUDITING COGS ITEMS IN
BASIC ISSUES RELTED TO COGS
1.1.1 Overview of the COGS item
Cost of goods sold is the cost of finished goods, goods, services or services provided in the period presented in the income statement
Cost of goods sold (COGS) represents the total expenses incurred for products, goods, and services sold during a specific period, indicating the consumption of these goods This metric is crucial for assessing a business's profitability within a single business cycle.
According to Circular 89/2002 / TT-BTC, dated October 9, 2002, the cost of goods sold encompasses provisions for inventory devaluation, direct material costs, and excess labor costs It is important to note that unallocated normal and fixed overheads, incurred during periods of below-normal operating capacity, are not included in inventory but are accounted for in the cost of goods sold for that period Additionally, this category reflects inventory losses after deducting compensation for personal liability.
The relationship between cost of goods sold (COGS) and inventory is closely intertwined, often leading auditors to conduct COGS audits alongside inventory audits When auditors gather sufficient and appropriate evidence to confirm the accuracy of inventory items on the balance sheet, they can reasonably conclude the reliability of the COGS reported on the income statement.
In manufacturing and commercial enterprises, inventory serves as a crucial intermediary in transforming resources into business outcomes This intermediary role often leads to an understatement of the cost of goods sold and an inflation of profits.
The cost of goods sold (COGS) refers to the expenses associated with purchasing or producing products for sale within a specific period This metric is essential for both manufacturing and trading companies In manufacturing firms, COGS encompasses direct costs such as raw materials, labor, and production overheads directly tied to the production process Understanding COGS is crucial for accurately assessing profitability and managing financial performance.
When auditing the cost of goods sold, auditors focus on general cost accounting standards, as this item is considered an expense.
The consistency principle in accounting mandates that the methods used in the current fiscal year must align with those applied in previous periods, ensuring uniformity across concepts, principles, and standards This includes maintaining consistency in recording inventory, as well as in the recognition of revenue and expenses.
• Conservatism principle: ensuring safety in calculating incomes and expenses in accounting, in particular, income must be sure, expenses must be properly and fully calculated
• Matching principle: cost accounting must be the right cost object, in the right period and in line with the income in the period.
1.1.1.3 The method of calculating the price of inventory
The cost of goods sold (COGS) is determined by the value of inventory that has been sold, and it can be classified according to different calculation methods Among these methods, the weighted-average approach is one of the three primary techniques used to assess inventory costs.
The ex-warehousing prices are determined using a method that calculates the average unit price, which includes the overall average for the entire reserve period, the average at the end of the previous period, and the average following each importation.
Actual price of Quantity of exported Average exported goods and = goods and finished x unit price finished products products
Average unit price is determined in many ways:
•The average price method for the whole reserve period:
This method is ideal for businesses with limited sales points but frequent import and export activities It utilizes the actual price and beginning inventory to calculate the average cost per product or product unit.
Average unit price of the the period + during the period reserve period The actual amount in stock at the beginning of the period + during the period
•Average method at the end of the previous period:
This straightforward method promptly captures the fluctuations in raw materials and goods; however, it lacks accuracy as it fails to account for price volatility.
Actual price costs at the beginning of
At the end of the previous period, the average unit price and the actual inventory were assessed, providing a clear overview of the inventory status and pricing dynamics.
•The average unit price method after each import
- This method overcomes the disadvantages of the two above methods, both accurate and constantly updated continuously
- The downside of this method is that it takes a lot of effort and calculation many times
Average unit price after Actual price after each import each import Actual quantity after each import
First in-first out (FIFO)
In the inventory management system, the principle of First In, First Out (FIFO) dictates that the first goods imported are the first to be exported This means that all imported goods are exported in the order they were received, based on the actual prices of each exported quantity Consequently, the ending inventory reflects the actual cost of materials purchased during the period.
Appropriate method in cases where prices are stable or in a downtrend b Specific Identification Method
This method calculates the unit price of imported goods based on the products, supplies, and goods remaining in the warehouse, ensuring that actual costs align with actual sales It adheres to the appropriateness principle of accounting, accurately reflecting the inventory's value in relation to the revenue it generates and representing the stock's true value.
The implementation of this method is limited to businesses that deal with a small variety of high-value, stable, and easily identifiable inventory items Conversely, companies with a diverse range of products cannot utilize this approach effectively.
COST OF THE SALES ACCOUNTING
1.2.1 The structure and content reflect the cost of goods sold
Table 1.1 Structure of 632-COGS Account
For production and business activities, reflection
Transferring cost of products, goods and services sold during the period to 911 account "Determination of business results"
Cost value of products, goods or services sold during the period
Transfer all investment real estate business expenses incurred in the period to determine business results
Unallocated cost of raw materials, labor and factory overheads are included in cost of goods sold during the period
At the end of the fiscal year, a reversal of inventory impairment provisions occurs when the allowance established this year is lower than the amount set aside in the previous year.
The loss or loss of inventory after deducting the compensation caused by personal liability
The loss or loss of inventory after deducting the compensation caused by personal liability
Costs of construction and processing of fixed assets in excess of normal levels
The reversal of accrued expenses related to real estate designated for sale will not be factored into the historical cost of self-constructed or self-completed tangible fixed assets This involves calculating the difference between the remaining accrued expenses and the actual costs incurred.
The amount of provision for devaluation of inventories
Trade discounts or sales discounts received after purchases are sold
In real estate investment, it is essential to consider that import duties, excise taxes, and environmental protection taxes are factored into the value of purchased goods, particularly if these taxes can be refunded upon the sale of the goods.
Depreciation of investment property used for operating lease is deducted during the period
Expenses for repairing, upgrading and renovating investment property are not eligible to be included in the historical cost of the investment property
Expenses incurred from the operation of leasing real estate investment activities during the period
Residual value of investment property sold or liquidated during the period
Expenses for the sale or liquidation of investment property in the period
Accrued expense for real estate considered sold
Account 632 does not have a closing balance
Under the current accounting framework, financial statements comprise the balance sheet, income statement, cash flow statement, and accompanying notes When auditing the cost of goods sold, the focus is primarily on the income statement, notes to the financial statements, and the balance sheet.
An income statement provides a comprehensive overview of an enterprise's revenues, expenses, and operational activities over a specific period, encompassing sales, service provision, and financial operations It details the revenue generated from goods sold and services rendered, along with the cost of goods sold for both the current and previous years.
Notes to the financial statements
Notes to financial statements offer essential insights into the recorded figures and events, enhancing the reader's understanding of a unit's financial data These notes detail the cost of goods sold for various products and services, comparing current and previous periods to provide a comprehensive view of the business's financial performance.
The incurred balance sheet, included with the financial statements, aggregates the totals from all accounts for the business's accounting period It presents key figures such as the opening balance, the expenses incurred during the period, and the closing balance of the cost of goods sold accounts.
Accounting books are essential documents for auditors during customer audits, as the data recorded in these books is crucial for preparing financial statements Various types of accounting books exist within a business, but to effectively audit the cost of goods sold, specific books are required.
- Ledger, detailed books of accounts 632, 154, 155, 156, 157: are records to track sales operations and warehousing of goods and finished products for sale
The production cost summary table outlines the components of the cost of goods sold (COGS), which includes direct labor, direct raw materials, and production overhead This summary is essential for auditors to evaluate the accuracy of COGS and ensure that all production and business costs are accurately accounted for.
An import-export inventory report offers auditors crucial insights into the quantity and unit price of imported and exported finished goods during a specific period This report enables auditors to verify the volume of finished products and goods exported, facilitating an accurate assessment of the cost of goods sold.
Diagram 1.1 Cost of sales Accounting
Diagram 1.2 Cost of sales Accounting
COGS WITH AUDITING ISSUES
1.3.1 Procedures for internal control of cost of goods sold
Find out and evaluate the effectiveness of the internal control system in the client's company
Before conducting a financial statement audit, auditors must evaluate the client's internal control system Analyzing this system and assessing control risks enables auditors to design suitable audit procedures, gauge the audit's complexity and volume, and ultimately estimate the time required while identifying key focus areas for the audit.
The better the entity's internal control system, the better the auditor will narrow the audit scope, audit time and cost for the audit
Auditors can conduct surveys of the customer's internal control system in the following forms:
Objective of the control test is for cost-of-sales item audits:
Reality: cost of goods sold recorded on the books must be real
• Content of control: That is, the auditor must consider the recognition of cost of goods sold based on the delivery note, delivery and delivery record
• Control procedures: The auditor selects a random sample of cost price recording operations in the year, compares the delivery note, delivery and delivery records
Completeness: Cost prices must be fully recorded
To ensure accurate financial reporting, it is essential that all notes regarding the release of goods and finished products sold are promptly transferred to the accounting department and updated in the accounting records Additionally, the accounting department should conduct monthly reconciliations with the warehouse keeper to verify the quantities of goods and finished products available for sale.
In analyzing the accounting departments and storekeepers, it is essential to select specific months to compare their operational minutes This comparison highlights the differences in their functions, responsibilities, and time management By examining these discrepancies, we can identify areas for improvement and enhance collaboration between the two roles, ensuring a more efficient workflow and better overall performance.
Sample a number of cost recognition operations in the year, check and compare the date on the release note with the accounting date on the accounting books
Accuracy: Costs must be accurately recorded
The responsible person must compare the amount of materials actually exported with the delivery note about the type, quantity, specifications and time of the proposal, and the actual export
The price spreadsheet must be independently checked to ensure consistency and consistency
To ensure effective control over cost of goods sold operations, it is essential to accurately record transactions within the fiscal year This involves a thorough comparison of the requested and actual quantities of goods, including their specifications and timelines, by examining the stock release requests alongside the corresponding release notes.
1.3.2 Common mistakes related to cost of goods sold
First, the cost of goods sold reflected in the accounting records and reports is higher than the actual cost
Second, confusion in the bookkeeping has resulted in the cost of goods sold in the accounting records and statements increasing compared to the number reflected on the accounting vouchers
Third, the cost of goods sold reflected on the report and book is lower than the actual cost Sales did not record any sales during the period
The accounting records and reports often exhibit confusion regarding the classification of various costs and expenses For instance, businesses may inaccurately categorize cost of goods sold, production and operational expenses, financial costs, and other expenditures, leading to discrepancies in financial reporting.
COGS AUDIT PROCESSING COGS
Mục tiêu kiểm soát/Sai sót có thể xảy ra
Thủ tục kiểm tra KSNB
Mục tiêu kiểm soát “Tính hiện hữu”: Giá vốn ghi nhận trên sổ kế toán phải có thật
Các nghiệp vụ giá vốn ghi nhận trên sở kế toán là không có thật
Việc ghi nhận giá vốn phải căn cứ vào phiếu xuất kho, biên bản giao nhận hàng, phiếu vận chuyển
Chọn mẫu ngẫu nhiên nghiệp vụ ghi nhận giá vốn trong năm,đối chiếu phiếu xuất kho,biên bản giao nhận hàng, phiếu vận chuyển
Mục tiêu kiểm soát “Tính đầy đủ”:Giá vốn phải được ghi nhận vào sổ kế toán đầy đủ
Nguyên liệu, hàng hóa, thành phẩm đã nhập kho nhưng chưa được ghi sổ kế toán kịp
[Trong ngày], các phiếu nhập kho,xuất kho phải được chuyển về bộ phận kế toán và cập nhật kịp thời vào sổ kế toán
Kiểm tra đối chiếu ngày trên phiếu xuất kho,phiếu nhập kho với ngày hạch toán trên sổ kế toán
C320/C330 thời [Hàng tháng], bộ phận kế toán phải đối chiếu với bộ phận sản xuất về lượng thành phẩm hoàn thành nhập kho
Chọn…tháng trong năm để mượn biên bản đối chiếu 2 bộ phận.Đối chiếu số liệu và xem xét việc xử lí chênh lệch(nếu có)
Các loại giá vốn không được ghi nhận chính xác
Người chịu trách nhiệm cần đối chiếu lượng vật tư thực xuất với phiếu xuất kho, đảm bảo đúng loại, số lượng, quy cách và thời gian đề nghị xuất, cùng với thời gian thực xuất.
Chọn các nghiệp vụ ghi nhận giá vốn hàng bán trong năm và kiểm tra, đối chiếu số lượng, quy cách hàng hóa, thành phẩm Đảm bảo tính chính xác giữa phiếu đề nghị xuất kho và phiếu xuất kho theo thời gian đề nghị và thực nhận.
Bảng tính giá thành phải được kiểm tra độc lập để đảm bảo tính phù hợp, nhất quán
No Describe Yes No Don’t apply
G220 Working paper for financial statement notes
G230 Auditing program - Cost of goods sold
G241 Summary table of detailed business results
Ngày kết thúc kỳ kế toán:
Nội dung: CHƯƠNG TRÌNH KIỂM TOÁN - GIÁ VỐN HÀNG BÁN
1 Đảm bảo giá vốn hàng bán phù hợp với doanh thu trong kỳ
2 Đảm bảo chi phí mua hàng, chi phí cung cấp dịch vụ phát sinh và được ghi nhận đúng đắn và phân loại phù hợp
O, C, A, Classification/Tính hiện hữu, tính đầy đủ, tính chính xác, phân loại
3 Đảm bảo giá vốn hàng bán, chi phí mua hàng được ghi nhận đúng kỳ
Đảm bảo rằng tất cả các thuyết minh liên quan đến giá vốn hàng bán được lập một cách chính xác và thông tin này được trình bày rõ ràng trong Báo cáo tài chính (BCTC).
P&D/Trình bày và thuyết minh
II RỦI RO Ở CẤP ĐỘ CƠ SỞ DẪN LIỆU
Dựa trên kết quả lập kế hoạch (tham khảo các tài liệu tại phần A800), xác định mức độ rủi ro cho từng cơ sở dẫn liệu của khoản mục và trình bày chi tiết theo tài khoản được kiểm tra trong bảng dưới đây.
P&D/ Trình bày và thuyết minh
Rủi ro ở cấp độ cơ sở dẫn liệu
III XEM XÉT BIỆN PHÁP XỬ LÝ KIỂM TOÁN
III.1 Rủi ro có sai sót trọng yếu của khoản mục
Rủi ro sai sót trọng yếu của khoản mục và biện pháp xử lý kiểm toán được ghi nhận từ các giấy làm việc tại phần A800 Nếu trong quá trình kiểm toán phát hiện thêm rủi ro sai sót trọng yếu, KTV cần cập nhật các giấy làm việc tại phần A800 và bảng liên quan.
Các rủi ro có sai sót trọng yếu
Cơ sở dẫn liệu bị ảnh hưởng
Ghi thủ tục kiểm toán
Khi đối mặt với các rủi ro cụ thể như rủi ro đáng kể và rủi ro gian lận, kiểm toán viên (KTV) cần thiết kế các thủ tục phù hợp để xử lý những rủi ro này Điều này có thể được thực hiện bằng cách sửa đổi các thủ tục đã nêu trong mục III.2 hoặc bổ sung thêm các thủ tục ngoài mục III.2 KTV có thể tham khảo thư viện các thủ tục kiểm toán bổ sung trong CTKTM - BCTC 2019 để hỗ trợ trong quá trình này.
III.2 Thử nghiệm cơ bản (áp dụng cho tất cả các nhóm giao dịch, số dư TK và thông tin thuyết minh trọng yếu)
Khi thực hiện thử nghiệm cơ bản, hãy xem xét các câu hỏi gợi ý để thiết kế và lựa chọn các thủ tục kiểm toán phù hợp Nếu câu trả lời là "Có", kiểm toán viên cần xem xét, điều chỉnh hoặc loại bỏ các thủ tục kiểm toán liên quan tại CTKiT.
Giá trị của khoản mục này có trọng yếu, vượt qua mức trọng yếu đã thiết lập, hoặc được dự kiến sẽ trở nên trọng yếu tại thời điểm kết thúc kỳ kế toán không?
• Khách hàng có lập đối chiếu về giá vốn hàng bán và bảng phân tích tỷ lệ lãi gộp không?
Giá trị của khoản mục này có phải là trọng yếu hay không, tức là có lớn hơn mức trọng yếu thực hiện tại thời điểm kết thúc kỳ kế toán?
Có những khoản phải trả có thể bị ghi thiếu do các thủ tục kiểm soát tính đúng kỳ của BGĐ không đầy đủ hoặc không hiệu quả không?
• Có bất kỳ sự không tuân thủ nào khuôn khổ lập và trình bày BCTC được áp dụng trong các kỳ trước không?
• Có bất kỳ thay đổi nào trong các chính sách kế toán trong kỳ không?
• Có các ước tính và xét đoán quan trọng nào được yêu cầu trong ghi nhận nhận giá vốn hàng bán trong kỳ không?
IV KẾT LUẬN LẬP KẾ HOẠCH
Theo quan điểm của tôi, việc lập kế hoạch cho các thủ tục kiểm toán sẽ giúp thu thập đầy đủ và thích hợp các bằng chứng kiểm toán nhằm đạt được các mục tiêu kiểm toán đã đề ra.
Thử nghiệm cơ bản (áp dụng cho tất cả các nhóm giao dịch, số dư TK và thông tin thuyết minh trọng yếu)
Khi thực hiện các bước B, C, D, E, KTV cần tuân thủ các thủ tục cụ thể được nêu trong tờ CTKiT tương ứng với từng bước.
Để xử lý các rủi ro cụ thể, cần loại bỏ những thủ tục kiểm toán không cần thiết và bổ sung các thủ tục kiểm toán phù hợp với yêu cầu thực tế của đơn vị được kiểm toán.
Xử lý cơ sở dẫn liệu
Tham chiếu giấy làm việc
Có thỏa mãn với kết quả không?
Chữ ký và ngày thực hiện
Kiểm tra tính nhất quán của chính sách kế toán so với năm trước và đảm bảo rằng nó phù hợp với khuôn khổ lập và trình bày báo cáo tài chính (BCTC) hiện hành.
Trường hợp có thay đổi chính sách kế toán đơn vị có tuân thủ theo hướng dẫn của [CMKT số 29] không.
Thu thập phân tích về giá vốn hàng bán
Lập bảng tổng hợp số liệu từ sổ cái tài khoản giá vốn hàng bán của kỳ hiện tại và báo cáo tài chính kỳ trước đã được kiểm toán, bao gồm chi tiết về giá vốn hàng bán và lợi nhuận gộp.
2 Thu thập danh sách chi tiết và đối chiếu với bảng tổng hợp số liệu.
Thực hiện thủ tục phân tích C, E,
3 Thực hiện thủ tục phân tích sau: A
(a) So sánh giá vốn hàng bán
Năm nay, việc tổng hợp và phân tích các thành phẩm, hàng hóa, dịch vụ, cũng như địa điểm bán hàng được thực hiện chi tiết, kết hợp với doanh thu và tỷ lệ lãi gộp Cần giải thích những biến động bất thường trong dữ liệu này Đồng thời, so sánh lợi nhuận gộp thực tế với lợi nhuận gộp kỳ vọng sẽ hỗ trợ cho việc tính toán giá hàng tồn kho (HTK).
STATUS AUDITING COGS ITEMS IN AUDITING
OVERVIEW OF FAT AUDITING AND FINANCE COMPANY LIMITED
2.1 OVERVIEW OF FAT AUDITING AND FINANCE COMPANY LIMITED
2.1.1 History of formation and development
Company name FAT Auditing and Finance Company Limited
Website: https://fat.com.vn
Headquarters : 80 Pham Huu Kinh, My An Ward, Ngu Hanh Son
FAT Auditing and Finance Company Limited was founded on April 27, 2018, under Business Registration Certificate No 0401895929, issued by the Department of Planning and Investment of Da Nang City, with its fourth amendment registered on October 19, 2020.
FAT Auditing and Finance Co., Ltd specializes in auditing, finance, and tax services, offering a comprehensive range of solutions including independent audits, internal audits, tax consulting, financial consulting, accounting, and training Authorized to audit various business types across all economic sectors, FAT has built a reputation for quality and reliability through years of experience and effective management practices This commitment to excellence has earned the trust and appreciation of numerous clients.
FAT has established itself as a leader in providing audit services, meticulously adhering to standard audit procedures that comply with both Independent Audit Regulations and International Auditing Standards By comparing and applying internationally accepted practices, FAT delivers reliable audit results, accompanied by constructive suggestions for improvement Through years of dedicated effort, FAT has earned the trust of its clients, reinforcing its reputation in the audit service industry.
FAT provides specialized services from basic to advanced as follows:
- Audit of completed project reports
- Auditing reports for tax purposes
- Check financial information on the basis of prior agreement
- Specialized in converting financial statements according to VAS, IAS
- Design and complete the model of the accounting apparatus
- Consulting on the application of tax policy
- Advising on tax implications for futures contracts, financial decisions
- Reviewing and evaluating compliance with tax obligations
- Advice on implementing the obligation to avoid double taxation
- Consulting on tax declaration and finalization
- Advice on tax refund procedures and tax complaints
- Support to update information on tax and tax policy
Financial and management consulting services
- Consulting on business establishment and management
- Consulting on setting up internal financial mechanism
- Valuation of enterprises for equitization or bankruptcy of enterprises
- Appraisal of financial situation and value of disputed assets, litigation
- Other investment and consulting services
Diagram 2.1: Organizational chart of FAT
General Director of the company: is the representative of the company before the Minister of Finance and the legal authorities about the entire operation process of the company.
The General Director will assess the risks of economic contracts related to the company's operations, maintaining relationships with senior ministries.
Answer important accounting and auditing questions.
Responsible for evaluating the audit work performed, signing the audit report and management letter
Be responsible for participating in the meeting with the client after the audit or re-authorization is over.
Being assigned to specifically deal with issues related to human resources, administration, plans and issues related to business.
Be responsible to the General Director and the laws of Vietnam.
Each department within the company is led by a Head of Department and a Deputy Manager The Head of Department is accountable to the General Director and plays a crucial role in the company's operations Acting as a liaison between the General Director, the management board, and employees, the Head of Department oversees human resources, coordinates activities, and manages administrative tasks This leadership position is essential in fostering a professional work environment and maximizing the development of the company's human resources.
The Deputy Manager serves as the primary advisor to the Head of the Department, overseeing all operations in the Head's absence and executing tasks as delegated by the Head.
The Management Board comprises the heads and deputy heads of the audit department, financial-accounting consultants, and select auditors from the company Each member is tasked with overseeing specific clients, as designated by the General Director in consultation with the department heads.
A principal auditor is a licensed professional responsible for overseeing audit assistants and directly reporting to the audit manager for specific cases.
Review preliminary working papers, support staff training, arrange personnel for audits.
The main auditor is allowed to sign the audit report as assigned by the head of the department
Have high responsibility when doing audit flexible and skillful behavior at work.
An auditor assistant is an individual involved in auditing tasks who has not yet passed the national auditor's exam These professionals are categorized into three types based on their skills and experience levels.
An Assistant Auditor Level 1 is an entry-level position for individuals who have completed a three-month probationary period and are officially employed by the company for up to one year, without having passed the national auditor's exam Typically, this role is filled by recent graduates from business schools or universities, as well as those with relevant qualifications and practical experience in auditing and accounting Assistant Auditors Level 1 work under the professional guidance of a more experienced auditor and have limited responsibilities, rarely reporting directly to the company's director.
Assistant auditor level 2: A person who has worked at an auditing company for two years, is responsible for the tasks assigned by the team leader
An Assistant Auditor Level 3 is an experienced professional with three years of tenure at the company, capable of leading audit teams for small enterprises.
2.1.5 The process of auditing financial statements by FAT Auditing and Finance Co., Ltd
Audit planning is a crucial first step in the audit process, establishing the legal and necessary conditions for an effective audit According to ISA 300, both the auditor and the entity must collaborate to create a comprehensive audit plan This plan is essential for gathering sufficient and relevant audit evidence, enabling the auditor to form a well-founded opinion on the client's financial statements Additionally, a well-structured audit plan minimizes errors and enhances the overall quality of the audit, fostering trust and credibility with clients.
At the start of the audit process, FAT will provide the client with a comprehensive list of necessary documents and data to ensure the auditor is well-prepared for a successful audit.
The audit planning process at FAT Auditing and Finance Co., Ltd includes the following work steps:
- Preparing for the audit plan: Receiving customers, assigning auditors' work, signing audit contracts.
- Research and collect customer information
- Assess materiality and audit risk
- Prepare complete audit plan and prepare audit program
At the start of the audit process, FAT will provide the client with a comprehensive list of documents and data required for the FAT auditor, ensuring optimal preparation for a successful audit.
The implementation phase is crucial for the overall effectiveness of an audit, as auditors execute test procedures outlined in the planning stage Utilizing the collected information and data, auditors apply specific techniques and methods tailored to each item being audited This thorough examination enables auditors to gather valuable evidence, forming the basis for their opinion on the accuracy and fairness of the financial statements.
During the audit implementation phase, FAT executes The main jobs are as follows:
Auditors gather and analyze data to conduct thorough audit procedures, ranging from summarizing to detailed examinations of financial statements They enhance their findings by employing additional methods such as interviews, confirmations, inventory checks, and observations to strengthen the evidence collected during the audit process.