Confirm the Audit Plan: Your auditor’s final step before going on the field is to finalize their plan with your company. The on-site process can begin once your company has confirmed the plan and is satisfied with the number of hours that correspond to the methodology and expenses.

1. Audit And Assurance Company On A Budget: 8 Tips
From The Great Depression

2. • The firm, S I G M A C & Co, Chartered Accountants, was founded in 1997. Qualified Auditors, Accountants,
and Business and Tax Consultants make up the firm. We are headquartered in Mumbai, India’s financial
center, and have operations in Delhi NCR, and Aurangabad. Years of expertise have led to significant
expansion and dramatic advancement with one focus: qualitative customer service with an ongoing
commitment to give best-in-class service to our clients.
• Audit And Assurance Company On A Budget: 8 Tips From The Great Depression
• Audits are divided into three stages: preparation, fieldwork, and reporting. Each phase can also be
subdivided further. There are eight major steps in the preparation phase:
• Receipt of Assignment: This phase informs your auditor if they must do a financial statement audit or a more
comprehensive performance or compliance audit. They may be given a vague assignment, to begin with, but
as auditing experts, they will be able to swiftly identify the job’s relevant objectives.
Audit And Assurance Company On A Budget: 8 Tips
From The Great Depression

3. • Research the Audit Subject: The AICPA issues Auditing Standards Statements (SAS). These publications
provide external auditors with guidance. The US GAO also publishes the Yellow Book, which contains
auditing requirements for federal entities. Both sorts of publications specify the questions auditors
should ask their respondents before conducting risk assessments. Understanding the industry, the
legislation, the nature of the company, the entity’s objectives and plans, the technique the entity uses
to assess and review financial performance, and the entity’s internal controls are among these. To save
time during this phase, many auditors adhere to the same last year’s (SALY) philosophy.
• Determine Audit Criteria: This is the auditor’s standard. Auditors conduct financial audits and compare
them to the Financial Accounting Standards Board’s Generally Accepted Auditing Standards (GAAS)
(FASB). Before the audit, the client and auditor must agree on the benchmark for audits that go beyond
finances.
Audit And Assurance Company On A Budget: 8 Tips
From The Great Depression

4. • Perform the Risk Assessment: A risk assessment consists of two parts: segmenting the audit and measuring
the risk of each segment. Financial statement audits are already segmented by SASs. When it comes to other
sorts of audits, auditors may have to get creative to separate the risk groups. The auditor then applies an
audit risk calculation to each piece: (Detection Risk) x (Inherent Risk) x (Audit Risk) (Control Risk). This
formula calculates the probability of incorrect findings as well as undetected major misstatements. The
auditor has complete control over the detection risk in this calculation.
• Confirm Audit Objectives: The auditor has already analyzed the risks and can confirm what the audit
objective(s) are at this point. In the case of a financial audit, for example, the auditor can include specific
objectives (sub-objectives) such as a review of cash receipts.
• Choose Audit Method: The techniques for making decisive findings should come naturally from the audit
goals. The auditor will link each aim to a methodology such that their results are supported by good
evidence. Methodologies include sampling, observations, interviews, and fluctuation analysis, to name a
few.
Audit And Assurance Company On A Budget: 8 Tips
From The Great Depression

5. • Link the Method to Cost: Once the auditor has determined the methodologies, the auditor will budget the
cost so that the firm may estimate the total cost of the audit.
• Confirm the Audit Plan: Your auditor’s final step before going on the field is to finalize their plan with your
company. The on-site process can begin once your company has confirmed the plan and is satisfied with the
number of hours that correspond to the methodology and expenses.
Source Link : https://www.sigmac.co.in/audit-and-assurance-company-on-a-budget-8-tips-from-the-great-
depression/
Audit And Assurance Company On A Budget: 8 Tips
From The Great Depression