The main objective of the audit work undertaken on an assignment would be to carry out such procedures as we consider necessary to form an opinion as to whether the financial statements of the client company give a true and fair view of the company's affairs and conform to International Accounting Standards. Our audit is an assurance to readers of financial statements of the reliability of our work. A secondary objective would be to provide professional advice on the basis of these accounts.
Our approach would be directed to ensuring that we carried out the procedures that were appropriate in a cost effective and constructive manner. This would include the use of the following techniques:
A) Systems Evaluation Approach
This approach consists of documentation and a comprehensive review of the client's system of internal control. It primarily consists of the recording and description of procedures of the accounting system, the identification of key internal controls and an evaluation of their relative effectiveness.
This forms the basis of our determination of the scope, timing and extent of our audit procedures. It ensures we understand the client's operations and procedures in depth and enables us to direct our attention to those areas where audit effort is most effective.
B) Analytical Review
An analytical review of the financial statements and accounting records includes a study of fluctuations and an overall review of the client's operations.