ATTESTATION/ASSURANCE ENGAGEMENTS
Our Primary Policy
Procedure
♦ Availing the appointment letter from the client, and no objection from the previous auditor, wherein the audit in past,
done by other firm.
♦ Determining the nature & scope of the assignment being handled.
♦ Issuing Engagement letter to the client.
♦ Enquire about Auditee’s Business, like nature, any severe fluctuation during the year, etc.
♦ To prepare work plan for the engagement being handled.
♦ To prepare detailed audit programme, establishing the assignment of different parts of the engagement to different
members of the staff, after considering the requirements of the job.
♦ Monitoring of audit progress by audit manager/ partner.
♦ Documentation of reviews done and observations thereof.
♦ Document of review by senior person.
♦ Indexing and numbering of documents.
♦ Flow chart of events for conducting audit’ Vs ‘Maintenance of records'
♦ Internal Control Reliance/ Non Reliance points
♦ History and background of the client and current trends in the industry.
♦ Compliance testing of different Internal Controls. Any deviation from internal control are questioned and recorded.
♦ Substantive tests as required are conducted in order to ensure the true & fair nature of transactions reflected by the
books of accounts.
♦ The internal controls exist
♦ The internal controls are actually effectively operating
♦ That the internal controls operated effectively & efficiently during the intended period of reliance.
♦ Testing the details of transactions and balances
♦ Analysis of significant ratios & trends, including enquiry of unusual fluctuations & trends
♦ Substantive tests are conducted to ensure that:
♦ An asset or liability exists on a given date and are recorded at appropriate value.
♦ All transactions/ events, relating to entity, occurred during the period and is recorded at proper amount.
♦ There are no unrecorded transactions/ events
♦ All disclosures, which are required, whether under some agreement, statute or as per some policy, are made.
♦ Checklist of compliance of law applicable, Accounting policies, Accounting Standards (AS), Unusual items,
Accounting assumptions is documented.
♦ Checklist of compliance of concerned statutes like Company Law, Income Tax Act, etc is documented.
♦ Summary of points not cleared and not given effect are documented with reasons.
♦ Appointment letter/ Engagement letter and its reporting requirement, whether met?
♦ Modification in Audit report, reason and procedure adopted.
♦ Before the release and signature of audit report, the audit file is subject to review by partner signing report to ensure
that all the Standard procedure of the firms were followed in the audit. For this purpose, standard questionnaire and
standard practise are set out separately.
♦ If any deviation from practice is noted, reason thereof is reported.
♦ The report is released only after this review.
Our Other Policies
- To perform attestation/ assurance engagements not only to comply with all legal/ professional requirement but also to serve the overall purpose with clients business perspective.
Procedure
- DOCUMENTATION FOR ADMINISTRATION:
♦ Availing the appointment letter from the client, and no objection from the previous auditor, wherein the audit in past,
done by other firm.
♦ Determining the nature & scope of the assignment being handled.
♦ Issuing Engagement letter to the client.
♦ Enquire about Auditee’s Business, like nature, any severe fluctuation during the year, etc.
- ATTESTATION SERVICES/ REVIEW/ COMPILATION/ SPECIAL WORK:
♦ To prepare work plan for the engagement being handled.
♦ To prepare detailed audit programme, establishing the assignment of different parts of the engagement to different
members of the staff, after considering the requirements of the job.
♦ Monitoring of audit progress by audit manager/ partner.
♦ Documentation of reviews done and observations thereof.
♦ Document of review by senior person.
♦ Indexing and numbering of documents.
- REVIEW OF INTERNAL CONTROLS:
♦ Flow chart of events for conducting audit’ Vs ‘Maintenance of records'
♦ Internal Control Reliance/ Non Reliance points
♦ History and background of the client and current trends in the industry.
♦ Compliance testing of different Internal Controls. Any deviation from internal control are questioned and recorded.
♦ Substantive tests as required are conducted in order to ensure the true & fair nature of transactions reflected by the
books of accounts.
- COMPLIANCE TESTS ARE CONDUCTED TO ENSURE THAT:
♦ The internal controls exist
♦ The internal controls are actually effectively operating
♦ That the internal controls operated effectively & efficiently during the intended period of reliance.
- SUBSTANTIVE TEST:
♦ Testing the details of transactions and balances
♦ Analysis of significant ratios & trends, including enquiry of unusual fluctuations & trends
♦ Substantive tests are conducted to ensure that:
♦ An asset or liability exists on a given date and are recorded at appropriate value.
♦ All transactions/ events, relating to entity, occurred during the period and is recorded at proper amount.
♦ There are no unrecorded transactions/ events
♦ All disclosures, which are required, whether under some agreement, statute or as per some policy, are made.
- PRESENTATION OF FINANCIAL STATEMENTS:
♦ Checklist of compliance of law applicable, Accounting policies, Accounting Standards (AS), Unusual items,
Accounting assumptions is documented.
♦ Checklist of compliance of concerned statutes like Company Law, Income Tax Act, etc is documented.
- AUDIT CONCLUSION AND REPORTING:
♦ Summary of points not cleared and not given effect are documented with reasons.
♦ Appointment letter/ Engagement letter and its reporting requirement, whether met?
♦ Modification in Audit report, reason and procedure adopted.
- INTERNAL PEER REVIEW:
- ♦ Before attesting any report internal peer review is undertaken by another partner.
- ATTESTING THE REPORT:
♦ Before the release and signature of audit report, the audit file is subject to review by partner signing report to ensure
that all the Standard procedure of the firms were followed in the audit. For this purpose, standard questionnaire and
standard practise are set out separately.
♦ If any deviation from practice is noted, reason thereof is reported.
♦ The report is released only after this review.
Our Other Policies
