The Scope of Auditing
The scope of auditing extends beyond just financial statements. Auditors also evaluate the internal controls, processes, and procedures in place to ensure the safeguarding of assets, the prevention of fraud and error, and the effectiveness of risk management. They assess the organization’s adherence to established policies, procedures, and regulatory requirements
OPERATIONAL PROCEDURES
Audit Planning & Methodology
Our plan for the audit will be dependent on the following→
- The state of the records of the client
- The areas to be visited
- The state of the returns received.
- The level of cooperation we will receive from the staff.
Therefore, we will carry out the assignment in the following stages→
- Preliminary discussion and agreement of audit work plan with management of the Organization.
- A detail review of internal control system, operational and financial policies and procedural manuals and reporting thereon.
- Detailed .validation of financial statements/agreements.
- Writing, submission and review of draft report with project team.
- Conclusion and submission of final report
It must be emphasized, however that the time spend on the assignment will also be dependent on the state of the records of the Organization, the area to be covered and level of cooperation from the staff during the conduct of the audit. A detail work plan in respect of the assignment will be submitted if and when we have the opportunity to carry out the assignment.
It is the policy of Firm to ensure that quality assurance process is applied to all the jobs we undertake. Consequently, this will also brought to bear on this audit and is composed of the following elements.
Quality Assurance
It is the policy of Firm to ensure that quality assurance process is applied to all the jobs we undertake. Consequently, this will also brought to bear on this audit and is composed of the following elements.
- Ensuring that all staff assigned to the audit understand the legal and regulatory frame work of the project funding arrangement.
- That the funding agreements are clearly understood and that they are being complied with.
- Staff’s work on the field is being constantly reviewed by the senior in charge of the audit.
- Peer review of the audit by the manager in charge with particular attention on the following areas;
- Legislative and regulatory framework
- Institutional framework and management capacity
- Procurement procedures and level of compliance
- Integrity and transparency of the procurement system.
- Linkage with other related activities.
Finally, a peer review by the partner in charge and the managing partner respectively before the submission of the draft audit report. This is to ensure that all gray areas are discussed and cleared with the project team.
Cost Structure
The fee for the assignment is based on the actual time to be spent valued at our charge-out rates recommended by the Institute of Chartered Accountants of Nigeria.
In any event, we have a system of cost budgeting as a basis of negotiating in advance the probable level of the fees we normally charge for an assignment. The estimate is made on the basis of the present economic situation and some basic known facts.
We hope you would find the foregoing information useful and shall be pleased to provide any further information/ explanations that you may require.