Auditing Essay Example | Topics and Well Written Essays - 750 words - 5

Auditing - Essay Exampleres atomic number 18 used by auditors so the accounting experts could plan ab let out an organizations internal system, its line of business and core segments as well as to plan round degree of other auditing techniques, tools and instruments. Nevertheless, auditing is facilitated from these procedures as they could to a fault help in identifying the areas where there are chances for greater audit risk. Indeed, the applications of such procedures are exceedingly helpful as they enhance the auditors awareness of various underlying areas in a business entity, which had non been touched upon in past and thus require more attention to identify possible auditing risks. Finally, analytical review procedures are largely based on periodic financial information, management accounts and budgets (Internet frc.org.uk, 1995).It should be pointed out that auditors could use financial resources such as budgets, forecasts, statements etc. to develop expectations. In add ition, non-financial information such as production and sales details in terms of number of units, sizes and packaging could also be beneficial, since it whitethorn prove to be pertinent during auditing process (Internet frc.org.uk, 1995).The two major types of auditing tests are Test of Control and significant test of transactions and balances. Indeed, the substantive test refers to an auditing technique through which the auditors tend to recheck balances of all accounts separately to swan whether amounts are rightly entered (in the ledgers or not), complete, accurate etc. In addition, the test not only centers about transactions and balances but it could also include analytical procedures for validation and auditing. For instance, these tests are conducted to ensure that accounting standards are rightly applied on business transactions to obtain correct balances as they are by and by used in preparation of financial statements. Any errors are rectified after complete auditing p rocess. For example, a Chartered Accountant may verify