What are the factors to be considered by the auditor when determining the need to use work of an expert?

What are the factors to be considered by the auditor when determining the need to use work of an expert?

When determining the need to use the work of an expert, the auditor would consider:

• The engagement team’s knowledge and previous experience of the matter being considered;
• The risk of material misstatement based on the nature, complexity, and materiality of the matter being considered; and.

What factors should be considered while making an audit program?

Factors Affecting Audit Planning Size of the company and nature of its operations. Accounting system, internal control and adherence to standard. Environment in which the company operates. Knowledge of client’s business.

What is role duties and responsibilities of auditors?

Duties of an Auditor. An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. Their primary objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.

What conditions auditor must assess before accepting an audit client?

Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client’s management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or …

Which of the following factors most likely would cause an auditor to decline a new audit engagement?

Which of the following factors most likely would cause an auditor to decline a new audit engagement? Failure of management to satisfy the preconditions for an audit.

What are the disqualification of auditor?

Disqualifications of Auditors A body corporate, except LLP. An officer or employee of the company. Any partner/employee of company. A person whose relative is a director or is in the employment of the company as a director or key managerial personnel.

What factors should an auditor consider prior to accepting an engagement explain?

What are the factors the auditor should consider when developing an engagement plan?

Engagement planning generally includes the following steps:

• Understand the context and purpose of the engagement.
• Gather information to understand the area or process under review.
• Conduct a preliminary risk assessment of the area or process under review.
• Form engagement objectives.
• Establish engagement scope.

What are the duties and responsibilities of an external auditor?

External Auditor Responsibilities:

• Evaluating financial statements and assessing accounts for accuracy and compliance.
• Investigating internal systems and operations.
• Assessing risk management approaches.
• Performing audits for other departments, as needed.
• Reporting on errors and fraud.

What are the duties and rights of an auditor?

Auditors must carry out an audit with professional integrity. If they do not comply with their duty to exercise reasonable skill and care, they may be liable for damages to the company or to its members in particular. What are the rights of auditors? Auditors have the right to: access the books and accounts of the company and its subsidiaries;

Who is right to sign audit report in India?

Right to Signature on Audit Report: Under section 229, only the person appointed as auditor of the company, or where a firm is so appointed, only a partner in the firm practicing in India, may sign the auditor’s report, or sign or authenticate any other document of the company required by law to be signed or authenticated by the auditor. 6.

Can a auditor pay a surprise visit without informing the director?

Thus, the auditor may consult all the books, vouchers and documents whenever he so likes. This is his statutory right. He may pay a surprise visit without informing the Directors in advance but in practice, the auditors inform the Directors before they pay their visits.