Advanced audit Essay Example | Topics and Well Written Essays - 4000 words

Advanced audit - Essay ExampleAuditing is the accumulation and evaluation of severalise about information to determine and report on the degree of correspondence between the information and constituted criteria. A competent, independent person should do auditing. To do audit, there must be information in a verifiable form and rough standards (criteria) by which the auditor potbelly evaluate the information. Information can and does take many forms. Auditors routinely dress audits of quantifiable information, including companies financial statements and individuals federal income tax returns. Auditors withal perform audits of more subjective information, such as the effectiveness of computer systems, the efficiency of manufacturing operations and likewise some others such as social audit and environment audit1. An illustration about auditing is given belowIn this figure summarizes the important ideas in the description of auditing by illustrating an audit of an individuals tax return was prepared in a manner consistent with the requirements of the federal internal revenue code. To accomplish the objective, the agent examines supporting records provided by the taxpayer and from other sources, such as the taxpayers employer. After completing the audit, the internal revenue agent exit come out a report to the taxpayer assessing additional taxes, advising that a refund is due, or stating that there is no change in the status of the tax return 2.Question oneRequirement 1Social and environmental auditingenvironmental auditing is a key component of Environmental Policy. This process is a systematic, objective evaluation of facility operations and practices which is designed to1. Verify compliance with environmental regulations, internal policies, and accepted practices.2. Evaluate the effectiveness of environmental focus systems in place.The key findings of a UK survey carried out by the University of Dundee in 1995 to a lower place the title The financial auditor and the environment can be summarized as follows- For most auditors environment is just another caper issue and is treated no Differently from any other area of actual and potential risk. For a small minority, the moral dimensions and the longer-term implications of sustainability do suggest that environmental issues are qualitatively different from other matters.- UK businesses and their auditors mostly face an uncertain environmental and legislative climate. It is often very difficult to assess from where the next major(ip) issue will emerge.- Most of the big auditing firms have initiated procedures within both their audit manuals/processes and within their readiness schedules.However, the majority of auditors do not perceive environmental issues as requiring special attention. They are simply adjourn of knowing clients businesses thoroughly.The International Auditing Practices Committee (IAPC) is finalising a draft of a proposedPractice Statement, which provides guida nce for auditors on how to conduct with environmental issues in auditing financial statements. Whereas an earlier IAPC draft had a wide scope covering also non-financial audit situations, the draft Practice Statement will probably restrict itself to financial audit issues under the headings (EAAR, 1996)- Consideration of environmental laws and regulations- Knowledge of the business- Risk assessments and internal control- Detection risk/ strong procedures- Using the work of others- Management representations- Reporting.Social audit To achieve these Policy objectives the company operating affiliates will - Build relationships with people in the host country and especially with people indigenous to areas of operations or exploration. Work continuously to understand the culture and social patterns of the people in the host country and also work especially among the people who are indigenous to ar