Analysis of the Auditing Report Purpose - Essay Example

Comments (0) Cite this document
This essay talks about the objectives and principles of accounting and the process of auditing, an examination of accounting books and any other relative documentary evidence that gives the auditor the ability to find out accuracy of figures and so that they can make reports on balance sheets…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.6% of users find it useful
Analysis of the Auditing Report Purpose
Read TextPreview

Extract of sample "Analysis of the Auditing Report Purpose"

Download file to see previous pages The essay "Analysis of the Auditing Report Purpose" overviews the main objectives and principles of accounting and the process of auditing that help an auditor in reporting the financial condition and working result of the organization. During auditing, the auditor may come across some errors and frauds although that is not the primary objective of the auditor. The auditor can also disclose whether the accounting system adopted by the company is efficient enough, during which time he may mention some several glitches in the system.
The auditor has to examine books of accounts and any other relevant document so that they can report the financial condition of the firm. During the process, the auditor may come across some errors or frauds which can be in the form of clerical errors or errors of principle. Clerical errors can be divided into errors of commission, errors of omission, and compensating errors. Some frauds can be so damaging that they lead to the company bankruptcy. A good example is The Enron scandal that led to the bankruptcy of the corporation that was a result of audit failure.
There are the following principles in auditing: planning, honesty, impartiality, secrecy, evidence, consistency and legal framework. The auditor has to plan before starting their work. The auditor decides to account about the internal control procedure and the accounting. Honesty and sincerity are the second most important principles of auditing. The auditor should exhibit a high degree of loyalty and professionalism. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 Words)
Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 Words.
“Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analysis of the Auditing Report Purpose


...with different business and financial risks. Globalisation can have varied effects on different economies in the world. Various forces like investors, borrowers, financial institutions, etc. are having an impounding effect on increased levels of financial globalisation (Schmukler, Zoido & Halac, n.d., p.1). With globalisation and associated risks, accounting and auditing procedures are also encountering significant changes worldwide. In this report the effects of globalisation on auditing mechanisms and various developments of auditing procedures have been studied. Globalisation Globalisation can be defined as the process of increasing association of the markets...
7 Pages(1750 words)Essay


...evidence to provide a basis for the report. b) It is responsibility for an auditor to perform test of control in order to check the strength and weakness. According to Chorafas (2002, 93), they also check efficiency and effectiveness of the internal control system (ICS). The result obtained by Susan indicates the presence of error, therefore the reliability of the evidence will be questionable. c) To determine whether the transactions are materially misstated, substantive test should be conducted by performing analytical procedures; this in turn reduces detection risk. They involve ratio analysis, looking at sales trends and other comparative financial statements. Susan who is a highly skilled and...
3 Pages(750 words)Essay


...balances for any inconsistencies, or reviewing and analyzing procedures used to carry out and to enter transactions. Analytical analysis is when a person scrutinizes financial statement in order to find any irregularities. This comprises comparison of financial and non-financial details. An analytical review is not as thorough as an audit (Puttick and Van Esch 735). #6. SAS 70 Report- any recent changes to this area SAS 70 is an auditing standard, which enables an independent auditor to assess and give an opinion on the controls of a service organization. The SAS 70 has the opinion of the auditor, and analysis of the controls used in the operation. User...
3 Pages(750 words)Essay


...Auditing Stagecoach Company is among the leading transport companies in the United Kingdom. The company is a quoted company and that means that it has to publish its financial reports on an annual basis. The reports are usually published so that the stakeholders of the company can use them. The stakeholders include the shareholders, government, and the employees of the company. In the preparation of the audited report, the auditor has to be aware of the risk areas that can be changed to make the financial statements of the company look more appealing to the stakeholders of the company (Emerson, 212).The risk areas include the following, 1. Overstating of...
7 Pages(1750 words)Case Study

Report in auditing

...No. 47 "Audit Risk and Materiality in Conducting an Audit" delineates the way the concept of materiality should be used for the purpose of audit. It states that auditors are required to give due consideration to materiality during the process of audit planning as well as in the provision of audit opinion in the report. It also requires auditors to determine the possible misstatements and to obtain sufficient evidence to discover the misstatements that fall within the realm of materiality. The auditor should therefore make a point to provide sufficient assurance at all levels in the audit process to...
5 Pages(1250 words)Essay

Auditing far as its referencing is concerned. On the other hand, provision for safeguarding the information of the organization may be created against the leakage of information either by the professional or any employee associated with the company.1 ii) The duties of the company secretary cannot be performed by the engagement partner of Ace Limited audit because the engagement partner is not well versed with the work performed by the company secretary of the company. Moreover, the engagement partner is already assigned the tedious task of audit reporting, maintaining relation with the client. However, an engagement partner can be linked to other companies, so the laws that the company abides...
4 Pages(1000 words)Essay


...Table of Contents Audit Risks 2 Group Accounts 2 Foreign Currency 3 Intangible Assets 3 Provisions 4 Taxation 4 Intangible Assets: Increased Risks and Audit Procedures 5 Valuation 5 Impairment 6 References 8 Audit Risks The audit of the company Mobile Streams Plc. is followed by risks as the nature of the business tends to increase the risks. With the increased risk as per the operations of the company there are risks involved for the auditors where the auditors shall not be able to discover the material misstatements in the financial statements whether intentional or non-intentional (Philip & Michael, 2007). The risks involved in the audit of this company is analyzed and elaborated. The analysis of the management assertions... to what the...
8 Pages(2000 words)Essay


...Auditing Part A 054 words Part B: 778 words March 27, Introduction The audit process entails determining whether the Havelock Europa Plc financial reports are true or correct (Havelock Europa, 2013). Untrue and incorrect financial reports include erroneous financial statement amounts (Arens, 2011). Errors are unintentionally misstatements are due to human errors. On the other hand, fraudulent financial statements include figures that were intentionally inserted by one or more company employees, possibly conniving with the external auditors. The research delves on the five areas of heightened audit risk. Auditing must prioritize...
8 Pages(2000 words)Assignment

Financial statement auditing analysis

...Financial ment auditing analysis By Company Analysis of PART A From the financial ments, the management commentary in the annual report and other sources, and using appropriate auditing procedures, identify FIVE areas of heightened audit risk relating to the audit of this company. Explain why you consider these areas of increased audit risk Auditing is an art in itself in the sense that, numerous procedures that guides it operations in various procedures. The process of auditing seeks to ensure that the financial statements and other documents are complete, they really...
7 Pages(1750 words)Case Study


...Corse 21 February “The Smartest Guys in the Room” Documentary the important individuals, their job and their responsibilities? A) Kenneth Lay - Lay is described as the founder of Enron and Arthur Anderson accountancy and audit firm. B) Jeffrey Skilling - Jeffrey was the manager in charge of human resource. As the manager in charge of human resource, his role involved creation of staff executives. However, he utilized poor financial reporting, special purpose entities, and accounting loopholes to hide dollars that amounted to billions, which originated from failed projects and deals. C) Andrew Fastow - He was the chief financial officer who with other executives misled the top management...
3 Pages(750 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Analysis of the Auditing Report Purpose for FREE!

Contact Us