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Audit Process What happens during an audit? Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans. Selection. Planning. Fieldwork. Reporting. Follow-up.
He should obtain a list of officers and staff along with their job profiles. He should study the complete accounting system of the client, the scope and effectiveness of internal control system and the list of books maintained by the client.
Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, often in some combination, in addition to inquiry.
Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review. Client involvement is critical at each stage of the audit process.
These features can be referred to as the four Cs of internal audit and they stand for: Compliance, Cybersecurity, Competitiveness and Culture.
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Additional Considerations in Initial Audit Engagements The auditor shall perform the following activities prior to starting an initial audit: (a) Performing procedures regarding the acceptance of the client relationship and the specific audit engagement (see ISA 220 for additional guidance).
The audit cycle typically involves several distinct steps, such as the identification process, audit methodology stage, audit fieldwork stage, and management review meeting stages. The meeting stage generally includes an audit report, which will lay out any discrepancies in the financial statements.
1 - Initiating, 2 preparing, 3 Conducting - opening/closing meetings, collecting evidence, findings, 4 Audit reports, 5 Audit completions.

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