Auditing

17 Sep 24

The Importance of Internal Audits in Compliance and Regulatory Standards

Understanding The Importance of Compliance & Regulatory Standards: In the present day dynamic business environment, compliance and regulation are not mere legal requirements but have transformed into strategic necessity. It is mandated for businesses both in Dubai and the rest of UAE to adhere with the legislation applicable in multiple…

13 Aug 24

Top 10 Benefits of Regular Business Audits

Regular business audits are essential for maintaining the financial health and integrity of any organization. Whether you’re a multinational corporation or a small to medium-sized enterprise, audits play a crucial role in ensuring compliance, detecting fraud, and improving overall business performance. This blog will highlight the top 10 benefits of…

21 Jun 24

Subsequent Events in Audit Engagements: Requirements, Considerations, and Auditor Responsibilities

Introduction In a 2008 report to the European Commission titled ‘Comparative Studying on the Application of the Standard on Events After the Balance Sheets Dates – IAS 10, in the audited financial statements of four New Member States of the EU’, the Public Oversight Accounting and Auditing of the Republic…

06 Jun 24

Evaluation of Misstatement in Audit Engagement (Part vi)

Communication & Reporting to Those Charged with Governance a) Communication with Those Charged with Governance Communication with those charged with governance is an integral part of the audit process because it helps the auditors gain a better understanding of the client’s management assertions, assess fraud risk, and approach the audit. If the communication goes well, it can…

29 May 24

Evaluation of Misstatement in Audit Engagement (Part v)

Specific Requirements and Application of ISA 450 The term ‘Application’ is an important step of applying the specific requirement. This can be simplified as a decision making process. The auditors shall make the initial assessment using the knowledge is gathered including the preliminary understanding the internal control. If the aggregate…

19 May 24

Evaluation of Misstatement in Audit Engagement (Part iv)

Evaluating the Effect of Uncorrected Misstatements considers materiality concepts already outlined previously. In this context, we can infer that misstatements are considered material if they would affect decisions made by users on the basis of the financial statements. This might include a decision not to invest in the entity, to…

11 May 24

Evaluation of Misstatement in Audit Engagement (Part iii)

Correction of Misstatements The importance of correcting misstatements is another area where the literature is silent. The auditing literature implies that auditors should correct all misstatements. More specifically, SAS (AU 326.20) and AAS 13 (AUs 322.20) require the auditor to request management to adjust the financial statements for all identified…

07 May 24

Evaluation of Misstatement in Audit Engagement (Part ii)

Categories of Factual Misstatements It can be assumed that factual misstatements are straightforward to detect and evaluate, and that auditors are likely to evaluate them consistently. This is because the distinction between the audited information and the auditors’ understanding, which is needed to evaluate misstatements, only exists for objective data,…

29 Mar 24

Internal Controls at the in Statutory Audit (Part viii)

Impact of Effective Internal Controls on Statutory Audit/External Auditor Procedures The work impact of effective internal controls on statutory audit and external auditor procedures is a limiting case of a much broader topic. It sheds a detailed light on the effects of internal controls in business and how different types…

21 Mar 24

Internal Controls at the in Statutory Audit (Part vi)

Internal Control Procedures Types Internal control procedures play a pivotal role in safeguarding assets, mitigating risks, and ensuring the integrity of financial information within organizations. Among the various types of internal control procedures, several key categories stand out for their significance in promoting effective governance and risk management. In this…