Procedure of auditing

Hi Vasudha, 

I would like to tell you one thing that the Articleship is one of the important chapter in our CA profession, becouse whatever we learn in our life will not be of any use if we dont apply in practically in our life .... so the same situation lies here, articleship help us to convert our knowledge in to action.

And this is very difficult for me to make you understand about auditing but still i am trying my best ................

As per my practical experience -

First of all you must understand about the responsibility of Auditors and management in an audit of Financial Statement.

So as an Auditor we have to obtain engagement letter. and consider the points which might effect the auditor independence.

After obtaining engagement letter we have to consider the following points before planning the Audit

1. knowledge of the entity (Nuture of the Business)

2. find out the areas where we need more attention

3. Internal auditor report (if applicable)

4. Prevoius year Audit queries

5. Weaknesses identified by the internal auditor, etc

6. materiality level (i.e., performance and component )

after that we should prepare the Audit Program, and then we move step by step as per Audit program.

If any descripencies found during the Audit Period we should report to those charged with governance or concern person and try to resolve the same. 

we should always keep in mind whats materiality will be effect our Audit report.

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The Audit procedure will depend entity to entity and various situation. but for good auditor we have a good knowledge of Standard on Auditing as well as Accounting standards and Tax laws.

I am sure this is not enough for you to understand about the Auditing. but still if there is anything in ur mind let me know i will try my best to share my personal experience with you.

Thanks and Regards

Shankar