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Our Methodology and Approach
- We use a risk-based approach to understand the client’s organization, its environment, and its industry. The audit team preliminarily identifies the areas where the risk of material misstatements if any in the financial statements exists.
We specifically consider-
- Financial reporting framework;
- Accounting policies and practices;
- Internal controls
- Business and industry;
- Financial performance; and
- Using a structured approach, we evaluate controls in order to assess the risk of significant misstatement for each audit objective. For audit objectives where we plan to rely on controls to modify the nature, timing, and extent of our substantive procedures
- We test select audit objectives using substantive analytical procedures, tests of details, or a combination of the two, as well as substantive procedures directed toward any fraud risk which we have identified. In designing our substantive audit procedures, we consider the characteristics of the class of transaction, account balance, or disclosure; our assessment of the risks of material misstatement identified during planning; and the effectiveness of controls over these risks
- We review the financial statements and determine whether the audit evidence obtained for each audit objective reduces the risk of material misstatements in the financial statements to an acceptably low level. Our audit opinion is based on a review of the final financial statements and an evaluation of all audit evidence in accordance with applicable auditing standards
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