The role of an Auditor and Audit Firm - Essay Example

The Role of an Auditor and Audit Firm Letter to Apollo Shoes To Apollo Shoes We Kantha Audit firm offer various services to our clients such as internal audit services. There has been a drastic change in the role played by internal audit due to increased globalization, economic conditions, and emerging risks (Braiotta, & Braiotta, 1994). This state of affairs creates a changing environment and a fresh prospect for internal audit to display its value. In the ever- hanging environment, numerous companies are finding it difficult to identify and manage the complex risk exposures, of which will assist Apollo Shoes.

 Our firm will offer services aimed at revolutionising the function of internal audit. Our company offers a combination of consulting services tackling the vital issues challenging internal auditors, such as risk assessments, technology, training, organizational and process- reengineering, reviews on quality assurance, as well as benchmarking. Apollo Shoes can also benefit from an external audit of their financial statements. We as the external auditor employ a process that first begins with a wide understanding of your corporate entity or business.

Secondly, we consider risks faced by your company, the risk control measures employed by the management and the level of transparency during reporting of findings to stakeholders (Moeller & Robert, 2004). The core elements are the capabilities to adapt consistently to business expansion and dynamic needs, proactive recognition of issues and timely, cooperative resolution- involving management all through the process. Furthermore, our company utilizes a universal audit methodology on all audit practices not considering the location in order to achieve consistency and uniformity in approach.

 Our firm also has continuous and persistent commitment to continuous expansion. We will also offer regulatory compliance and reporting service to Apollo Shoes. This aspect ought to be examined as a typical extension of the governance roles undertaken by corporate boards and top management (New Zealand, 1995). This is because only proper governance can ascertain that compliance runs parallel to Apollo Shoes business objectives and strategies of risk management. Thus, in so doing adding not only cost but also real value to your company.

We offer advice, support, and regulatory services to assist organisations carrying out regulator- controlled activities to handle regulatory risks in an environment that is ever- changing. Our firm aims at employing a proactive as opposed to a monitoring approach as part of its strategic necessity. In addition, our firm will also conduct Apollo Shoes systems and process assurance service. In the modern- day business world, financial reporting and IT environments are increasingly becoming complicated as increased dependence is placed on the data emanating from these processes and systems (Moeller & Robert, 2004).

Furthermore, numerous countries have new regulations putting more stress on internal controls and habitually need autonomous assurance of the efficiency of internal controls. In order to achieve timeliness and accuracy of management decision- making and financial reporting information, of vital importance is documentation, attention to detail, and controls operation. Through our continued professional service and relationships with our clients, we offer third party assurances as a critical component of our auditing process.

This is in line with the changes in business environments, increase in demand for transparency and trust as companies depend further on other companies to meet their corporate goals (Maletta, 1989). During the current tough and volatile economic times, obtaining a competitive edge and being confident in your processes, controls, procedures are business necessities. Companies must develop innovative methods to increase efficiencies while lowering costs to be market leaders. Our firm will present Apollo Shoes with assurance further than the audit of financial statements, by delivering creative solutions necessary for augmenting revenue, market share and market reputation.

In order to provide the above services there are qualifications that auditors should possess. The first and most basic requirement is being a professional accountant by attaining membership of an accounting body called IFAC and meeting the requirements set out in IES 1 to 6 (Maletta, 1989). In addition, one should possess an undergraduate degree and have exemplary skills, knowledge, professional values, practical experience, as well as attitudes and ethics prescribed in the mentioned accounting standards of which all our audit team members have.

Furthermore, apart from meeting the requirements of IES 2, audit professionals should be knowledgeable mainly in three vital areas: financial accounting and reporting, financial statement audit, as well as information technology (Moeller & Robert, 2004). They should also have had relevant practical experience prior to being effectively involved in an assignment of financial statement audit. This experience either can be pre- qualification, or be obtained during or after professional accountancy qualification.

This experience can be achieved under the supervision of an auditor in an appropriate organization. This is to ensure a great level of diligence and professionalism, as auditors are financial watchdogs Our audit team consists of professionals knowledgeable and experienced and stipulated above. The team consists of experienced risk regulatory professionals, such as ex- regulators who, in addition to understanding the rules, have assessed and implemented compliance against them (New Zealand, 1995).

We are adequately staffed with experienced audit seniors and assistants who will advice Apollo Shoes strategic level managers to capitalize on any competitive edge from operational level to regulation, and reduce the disruptions and costs facing your business, therefore, creating efficient management of time. The audit team is mandated to ensure safety of Apollo Shoes from reputational damage and regulatory infringement. While auditing management systems, the perspective of the auditor spots opportunities for improvements that result in improved performance (Braiotta, & Braiotta, 1994).

The auditors play a role of observing trends and processes and engaging people within the representative group of the organization, such as middle level and senior managers, ensuring the effective implementation and functioning of the management system and verifying its alignment with their wants and needs. We as the auditors after our examinations and audits make recommendations and report our findings expressing our opinion through our audit report to Apollo shoes. Yours Sincerely Audit Manager Kantha Audit firm References Braiotta, L.

, & Braiotta, L. (1994). The audit committee handbook. New York: Wiley. Maletta, M. J. (1989). The effect of inherent risk and control design strength on external auditors' decisions to rely on internal audit functions. Ann Arbor, Mich: UMI. Moeller, Robert R. (2004). Sarbanes-Oxley and the New Internal Auditing Rules. Wiley. New Zealand. (1995). The role and functions of the Audit Office. Wellington: Office of the Controller and Auditor-General.