Irs agent - in what ways audit procedures and audit objectives related?
Q.The Irs is auditing to my company, I have no experience about it Can anyone tell me in what ways audit procedures and audit objectives related? It is my knowledge that they are not related, anyone know?
A.Audit procedures are related to audit objectives in the sense that, audit procedures are carried out to satisfy audit objectives. Audit objectives are satisfying yourself that: -Existence of the asset or liability (or Occurrence for profit & loss transactions) -Ownership by the entity being audited of the asset or liability or that the P&L transaction was carried out in the company's name -Completeness. That is all transactions have been included. -Valuation/Measurement (Balance Sheet items are valued properly, P&L items were measured correctly at the time of the transaction) -Presentation . The individual balance sheet & P&L items have been presented in accordance with GAAP. The audit procedures are then designed to ensure that the above audit objectives have been met for each financial statement item. Audit procedures that do not help you satisfy your audit objectives are unnecessary and a waste of valuable time (and by extension money) I would also suggest you obtain a good auditing textbook as this information should be in any introductory auditing text. Audit procedures are designed to accomplish audit objectives. The ultimate objective of an audit is to express an opinion on the financial statements. Audit procedures provide the evidence needed to support that opinion. To those that look at auditing as a "cookbook" project (pull out the audit program, do whatever it says and be sure you initial off on the step) that may seem true. But anyone who is actually in auditing and who believes that shouldn't be auditing. The point of the audit is to provide adequate evidence to support management's assertions (the objectives being supporting those). If you can't tell me how your procedure works to do that, you are both wasting time *AND* likely not performing an adequate audit.
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