Explain how a strategic understanding of a client’s business may increase the value of the audit service.
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Explain how a strategic understanding of a client’s business may increase the value of the audit service.
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- Explain how a strategic understanding of a client’s business may increase the value of the audit service. PermalinkReplyexplain why and auditor needs an understanding of the client's industryHow does an auditor help the smooth flow of operation inside an organization? Provide relevant examples explaining.
- Assess the value of an organization's internal audit function to its overall success.Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…Analyze what information the auditors are needed to provide to those in charge of the client's governance.
- How might preliminary analytical procedures enable the auditor to better understand the business and its environment?Auditors seek to understand a client's internal control in order to better serve their clients.To what extent do auditors contribute to the smooth functioning of a company? Using appropriate examples, clarify what you're trying to say.
- Describe the key elemnts of IT audit engagement level planning and explain how these elements help create value from the IT audit process. What are the key IT audit planning standards that you must consider in planning this audit?Performance Principle. Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements inproviding your response:∙ Reasonable assurance∙ Planning and supervision∙ Materiality∙ Risk assessment∙ Audit evidencea. Evaluating the effectiveness of the client’s internal control in preventing or detectingmisstatements.b. Obtaining an understanding of the client’s business and industry.c. Acknowledging that the risk of failing to detect a material misstatement cannot bereduced to zero.d. Obtaining confirmations from the client’s customers as to the ending balances inaccounts receivable.e. Preparing a written audit plan.f. Designing audit procedures to identify misstatements that would have a significanteffect on financial statement users’ decisions.g. Considering the likelihood that the account balance contains a…Discuss the various options for properly positioning an internal audit function within an organization and the related advantages and disadvantages for each identified option. What are the primary factors an organization should consider when establishing an effective internal audit function?