Our Approach
How We Do It
The general approach to the audit assignment is designed with the objective of issuing an audit opinion on the financial statements of the entity. In this regard, we expect to be availed the following:
- Final trial Balance
- Draft Financial Statements
- Access to all documents and records
The audit is conducted in accordance with International Standards on Auditing (ISAs). We conduct risk-based audits which requires that we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Acceptance of the assignment
As the auditors, we need to confirm that we have accepted the appointment by issuing a formal engagement letter which will contain details of the duties and responsibilities of both parties as well as the scope of the audit.
Audit Evidence
As auditors, we will collect, assess, and interpret data/evidence to gain understanding of the organisation’s activities. For each major activity listed in the financial statements, we will have to identify and assess risks that may have significant impact on the organisation’s performance or financial position. We shall be expected to have unrestricted access.
Reporting
Upon completion of the audit, we issue Audited Financial Statements which include our opinion. We also issue a Management Letter which focuses on our findings regarding Key Audit Matters (KAMs) which may require the attention of those charged with governance.
Timing of the Audit
The time required to complete the Audit Assignment will depend on many factors including availability and accessibility of information, records and data; complexity of the audit; nature and business model of the entity as well as of the findings made in the course of the audit. On average, audit assignments take ten working days to complete.