Effective Audit Planning and Execution: A Comprehensive Approach

Technical Planning

• CI study and assessment (determining the degree of confidence to rest their audit procedures)
• Predecessor interview with auditors (to glean stronger evidence and information)
• Delivering the letter of observations and suggestions derived from the preliminary study (are suggestions the entity is eligible for and make necessary corrections)
• Determination of fee calculation
• Presentation of the proposed fees
• Signing the letter agreement

Administrative Planning

• Assignment of personnel involved with the audit
• Establishing policies and utilization of working papers (so that evidence can support the assertions of the auditor)
• Establishment of catalog and index marks
• Structure of the sets of auditing (the classification should be established so they are classified according to the needs of the auditor)
• Working papers (Represent an aid in planning, implementation, and supervision necessary to support the auditor's opinion)
• Use of CI questionnaire
• Professional conduct

Audit Execution

• Purpose (for the auditor to form a preliminary opinion on the fairness of the financial statements considering the NIF)
• Begins during the ninth or tenth month, is characterized by the application of substantive evidence, we study movements and balances, the scope, nature, and timing of audit evidence is given in confidence CI., establishing the importance of accounting
• At this stage outlines the objectives to be achieved (analysis of financial statements, analytical accounts, minutes of meetings and constituent significant changes in financial statements, conciliation accounting/tax, provisions, conciliations balances, etc.)

Audit Procedures

• Team presentation
• Obtaining of statements and trial balance
• Set to perform confirmations
• Opening cards and reclassification adjustments
• Opening cards of observations
• Opening cards of outstanding issues
• Obtaining of deeds and contracts
• Obtaining of general corporate roles and structure
• Determination of legal affairs of the company
• System of accounting books and records
• Tax Matters
• Personnel and payroll

Review of Deal Flow

• Asset accounts
• Liabilities
• Capital
• Results

Closure of Ballots and Audit Conclusion

• Closure of audit (examines the end of the last few months since I check all not occur in the same generation)

Procedure

Financial statements should verify the order. By the dates have not been reviewed, seeking to implement alternative procedure, is to identify accounts with inconsistent or disproportionate movements with respect to previous months, compare the results of analysis of turnover and balance, strengthen the application of selective tests, SWOT analysis identify small major weaknesses and to maintain or expand market, economic and financial needs, loyalty to workers, etc.

• The tie is made of figures
• Also performing the recognition of inflation
• Management are discussed in general the adjustments and reclassifications
• Statements are made final order
• Closes the documentary evidence
• Approving the filling of the final figures of the opinion
• Notes are made to order
• Statements are obtained
• Delivery is the letter with comments and suggestions
• Delivered the opinion of its presentation
• Gives its opinion
• Subsequent events are checked
• Value added