. a) 1. Audit staffing requirements;
It is important because:
• The auditor can determine the nature, timing and extent of audit procedures
• It also helps in co-ordinating work to be performed.
• Established degree of internal control
• The client budget limit should not be exceeded
• He may require to involve experts.
2. The timing of audit field visits;
• So as to organise discussions with client’s management and staff
• He should also organise to have access to the premises and the plants
• Special skills needed to possess and the timing of their audit visits.
3. Clients use of computerised systems.
It is important because there are several differences in auditing manual and a computerised system. The basic approach to an audit is the same for all audits. However there are some features of computerised systems which make it necessary to change some to the audit approach. Methods used by companies range from the use of giant mainframe computers to desktop machines, from centralised computer departments to the use of outside bureau, to the use of electronic invoicing systems. The auditor has to adapt himself to this resolution. However, the auditor’s duties remain the same whatever the data processing systems used.
b) 1. Inputs to the planning process in respect of audit staffing requirements:
• How many staff members are needed for the work?
• The duties and responsibilities of each of them.
• The use of experts
• Experience of audit assistants required.
2. Inputs to the planning process in respect of timing of audit field visit
• Timing for visits to various branches
• Personnel to be sent to the branches
• Information to be gathered from them.
3. Inputs to the planning process in respect of clients use of computerised systems.
All audits must be planned. In a computer environment the following matters may need to be borne in mind.
• Auditors need to be involved computerised systems at the planning development and implementation stages. Knowledge of the system gained at these stages will enable the auditor to plan his audit with an understanding of the system.
• Timing is more important in computerised environments than in manual ones. The auditor will need to be present when data and files are available. More frequent visits to the client are usually required.
• Recording methods may be different. A recent development is the use of portable micro computers to make the audit working ‘papers’ on floppy discs instead of paper.
• The allocation of suitably skilled staff to the audit. It may be necessary to use the computer audit department for some parts of the audit and for general audit staff to have had some computer experience.
• The extent to which CAAT (Computer Assisted Audit Tests) can be used. These techniques often require considerable planning in advance.
Musyoxx answered the question on March 16, 2018 at 16:36
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Required:
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Required:
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Required:
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Date posted: March 14, 2018. Answers (1)
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Date posted: March 14, 2018. Answers (1)
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Date posted: March 14, 2018. Answers (1)
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Date posted: March 14, 2018. Answers (1)