Tài liệu AUDITING pptx

AUDITING ● Systematic process of objectively obtaining and evaluating evidence » Regarding assertions about economic actions and events; » To ascertain the degree of correspondence between those assertions and established criteria; and » Communicating the results to interested users (AAA) Purpose of an Audit To provide certain degree of assurance that the activities reviewed (financial statements, operations, management practices, etc.) have been performed in accordance with applicable standards or practices. Standards on Auditing ● Either: International Standards on Auditing, issued by IFAC (International Federation of Accountants) ● or: Standards for Government Auditors, issued by INTOSAI (International Organization of Supreme Audit Institutions) AUDIT COMPLIANCE TYPES OF AUDITS ● Financial ● Compliance ● Operational FINANCIAL AUDITS ● The Implementing Organization’s Financial Statements ● Project Financial Statements ● Statements of Expenditures (SOEs) ● Special Bank Account (SA) Implementing Organization’s Financial Statements Overall objective is to express an opinion on fairness of statements Phases: ● Understanding the Organization ● Evaluating Internal Controls ● Testing Financial Statement Balances Understanding the Organization ● Nature of the Organization’s Activities ● Organization’s Background ● Significant Trends and Relationships ● Staff Appraisal Report (SAR) ● Loan Agreement ● Other Documents Pertaining to the Project Evaluating Internal Controls ● Purpose: To determine the audit tests required for forming an opinion ● How much Reliance on internal controls? ● Extent of Validation? » Tests of Compliance » Tests of Transactions ✔ Not an endorsement of the overall adequacy of the internal control system Testing the Balances ● Purpose: To determine if information is fairly presented ● Examples: » Observation of Inventory-taking » Verification of Fixed Assets » Direct Verification with Third Parties ✔ Level of Testing Might Depend on Results from Prior Phases Audit of Project Financial Statements ● Overall Objectives » Statements fairly presented? – For the period – Cumulatively ● Disbursements made in accordance with: » Loan agreement » SAR ● Fair presentation of balance sheets, especially assets [...]... multi-year contract q Terms of Reference (TOR) Provide guidance for the audit and format of the audit report q Should not restrict the auditor’s obligations with respect to legislation, regulation, and auditing standards q » In the event of poor performance, auditors should not be able to claim that TOR requirements prevented them from doing professional work q Guidelines & Sample: Annexes 18-19 Additional . with applicable standards or practices. Standards on Auditing ● Either: International Standards on Auditing, issued by IFAC (International Federation. AUDITING ● Systematic process of objectively obtaining and evaluating evidence