A Complete Handbook on Audit Assurance

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• A Complete Handbook on Audit Assurance

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• Importance of Audit Assurance

Audit Assurance is a professional service that
aims at reducing problems occurring from
incorrect information. It is integral in any
information to avoid any form of discrepancy on
the financial, operational or compliance front.
It enhances the quality and transparency of
information.
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Who is it for?
Auditing is a requisite for companies if at any
time of the financial year it has been involved
in any of the following
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Issuing of e-money and been involved in banking
processes
Having made the company public
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Initiating or indulging in insurance market
activity or having insurance activities as the
main operation of business activities
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• Different types of Audit

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Operational Audit Involves a detailed insight
and breakdown of the companys goals, processes,
procedure and planning with identification
of pointers for development
Financial Audit The most common form of audit
and the most widely used. It involves prospect
inspection a organisations financial processes
by usually a third independent party. It offers a
judgement on the accounting framework of the
company and its overall authenticity and
credibility
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Compliance Audit This effectively ensures if the
regulatory and the internal standards set in a
company is duly complied with and carried out on
a consistent basis in regulated organisations
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• Steps Involved in Auditing

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A complete examination and understanding of the
companys activities and background and the
consideration of external factors that might
have affected operations during the reporting
period
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The identification of any form of risk pertaining
to the financial landscape and if any steps have
been taken internally to diminish the identified
risks
Assuring the authenticity of the created
financial reports through extensive testing
strategies such as control testing and
substantive testing. Substantive testing involves
the assessment of tangible proof of completed
transactions that eventually authenticate the
provided figure. Control testing helps reduce the
risk of errors and fraud during the auditing
process. An appropriate example would be the
approval of bills and cheques with the help of
authorized signatories that will validate the
presented information
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• Steps Involved in Auditing

The audit judgement is presented in the form of a
consolidated standard report which includes the
financial statements. Advices on any weaknesses
in the organisations management framework are
also communicated
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• Common Arguments About Auditing

The general perspective about the entire audit
assurance process involves varied arguments that
include misconceptions and misunderstandings on
the topic. A few of the most common
misunderstandings are
Auditors are not present in the company premises
at all times and they target only a specific
piece of information from a targeted time frame
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A well-structured and executed audit process does
not necessarily ensure the companys successful
running of operations in the long run
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• Common Arguments About Auditing

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Auditors do not actively search for frauds but
are there on a definite lookout
The auditors work on behalf of the shareholders
and not the company itself. The shareholders
have the decision making power in appointing the
auditing personnel
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Auditors do not check the transactions in its
entirety but only check the ones that provide the
necessary information that acts as the crux of
the entire material
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