Audit Procedure - Audit Process, Auditing and Secretarial Practice Video Lecture | Auditing and Secretarial Practice - B Com

let's understand the audit process it
means it has a start it has a process
and it is an end so let us try to
understand that entire chain okay so to
start audit what is required number one
requirement number one is auditor should
be first of all appointed appointment of
auditor is the requirement number one it
means or it will have to be appointed so
there should be an audit engagement
letter and all after this appointment
auditor should go and understand the
business of the client what business
they are in - what are the special
features of their business the
accounting aspects of the business so
understand what business they are in -
so that is the second process now having
accepted the appointment - having
understood the business auditor should
do something very very clear critical
that is he should prepare audit plan and
program so this will enable the auditor
to take the audit without much
difficulty so that they can go on in a
very very structured pattern then the
auditor should decide the nature of the
audit then he should decide the timing
because it's so very important okay then
he should also decide the extent to what
level he should go deeper into the audit
so in short I will call them as nte
auditor should decide the nature timing
and extent of the auditors he should
plan for the nature timing and extra
then auditor should carry out what is
known as compliance procedure
you should carry out what is known as
compliance procedure of internal control
systems so that he can decide how much
of substantive procedures are required
okay that is by carrying out the
compliance procedures of internal
control system alter will be able to
decide how much of substantive
procedures are required then auditor
should do his audit right and you should
collect various evidences you should
collect various evidences you should
maintain all the working papers okay
so maintenance of working papers is very
very critical now having done the order
having obtained various working papers
which I call them as audit evidence
auditor should go through this evidence
he should come to a conclusion and he
should frame and opine e'en about the
financial statement that's more
important he should frame an opinion
about the financial statement now once
he had framed an opinion about the
financial statement this have to be
communicated to the persons who have
appointed him as an auditor and he
should communicate his opinion through
his audit report so this is the process
involved in or it okay pauses number one
first of all the auditor got to be
appointed number two auditor should
visit Klein he should understand his
business he should understand critical
accounting aspects of his business how
things have been done then he should
prepare audit plan and program then he
should decide the nature timing and
extent of audit then whether substantive
or it is required or not
when weather the audit procedure should
go substantive deeper or not that can be
decided by doing complaints procedure of
internal control system then he should
do detailed audit and he should collect
various working papers and those working
papers are going to act as or it
evidence then he should review all these
evidences and he should come to a
conclusion and he should frame an
opinion he should frame an opinion on
what he should frame an opinion on
financial statements then he should
communicate his opinion to the persons
were appointed him through the audit
report okay so this is the audit process