Audit framework Essay Example | Topics and Well Written Essays - 5000 words

Audit framework - Essay Example Operational audit a review of any part of an organization’s operating procedures and methods for the purpose of evaluating efficiency and effectiveness. And compliance audit – Auditing process is considerably broader than the definition of an audit of historical financial statements and encompasses many attestation and assurance service activities. Definition of auditing is also includes several key words and phrases. In auditing accounting data, the concern is with determining whether recorded information properly reflects the economic events that occurred during the accounting period. Because accounting rules are the criteria for evaluating whether the accounting information is properly recorded, any auditor involved with these data must also thoroughly understand those rules. To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. Information can and does take many forms. Auditors routinely perform audits of quantifiable information, including companies’ financial statements and individuals’ federal income tax returns. Auditors also perform audits lf more subjective information, such as the effectiveness of computer systems and the efficiency of manufacturing operations. This is a case study for auditing Southern Rock, a high street UK Bank, registered in Southampton. Here audit partner in the firm is â€Å"APMC Auditors† has provided some questions to answer. Answers of the given questions are answered as bellow respectively: The â€Å"going concern† perception is one of the regulatory foundation stone of the financial accounting arena. The spirit of going concern express that the Balance Sheet of a company must be an echo the weight of that company as if it would stay in existence for and beyond the predictable future. In other words, the going concern concept also states that the company would