Types of Audit

Interim Audit – Definition, Objectives, Characteristics, and Much more!

Definition of Interim Audit An interim audit is defined as an audit that is conducted between two financial years, with the prime objective of checking the transactions that have occurred between the financial year-end of the last year, and the date on which the interim audit is being conducted. An interim audit is conducted in …

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Journal Entry Testing: Definition, Process, and Importance

What is Journal Entry Testing? The underlying need for journal entry testing arises when the auditor needs to test the nature, timing, as well as extent of the underlying journal entries. It is mostly undertaken in order to recognize the material misstatement that occurs as a result of fraud when organizations are recording financial transactions, …

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What is a Disclaimer of Opinion? (Definition, Explanation, Example, and How Is It Different From the Adverse Opinion)

Definition Disclaimer is when the auditor does not give any opinion regarding a set of the financial statement. In other words, auditors distance themselves from giving any opinion on a set of financial information. The auditor may issue a disclaimer on account of the inability to obtain sufficient and appropriate audit evidence for the material …

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Intimidation Threat to Auditor and Related Safeguards

An auditor is an independent party that examines a company’s financial statements. The primary purpose of this process if them to provide an unbiased opinion related to those statements. Similarly, this opinion also comments on the auditor’s work performed through the audit report. This report helps the users of those financial statements make well-informed decisions. …

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Familiarity Threat to Independence and Objectivity of Auditor

In business practices, when an auditor undertakes an auditing engagement, they have to measure and evaluate their independence and reliance on objectivity to the undertaken task. Their independence and adherence to objectivity ensure success in auditing efficiently and effectively. The auditor’s independence is highly objective and critical to the continuation of the audit in a …

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What Is Self-Review Threat to Auditor and How to safeguard against it?

When auditors encounter the risk of assessing their own work, this is known as the self-review threat. Apart from their basic services, audit firms frequently offer other services. Accounting, valuation, taxation, and internal audit are some of its examples. When an auditor is required to review work that they previously completed, a self-review threat may arise. For …

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