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If the auditee is not a going concern, it means that the entity might not be able to sustain itself within the next twelve months. Auditors are required to consider the going concern of an auditee before issuing a report. [8] If the auditee is a going concern, the auditor does not modify his/her report in any way.
A joint audit is an audit on a legal entity (the auditee) by two or more auditors to produce a single audit report, thereby sharing responsibility for the audit. A typical joint audit has audit planning performed jointly and fieldwork allocated to the auditors. The auditors are typically not individuals, but auditing firms.
Lead auditor is a position between senior auditor and head of division. In public accounting firms, a lead auditor for an audit engagement is usually chosen from among the senior auditors. Certified lead auditor
Consultant auditors are external personnel contracted by the firm to perform an audit following the firm's auditing standards. This differs from the external auditor, who follows their own auditing standards. The level of independence is therefore somewhere between the internal auditor and the external auditor.
Before determining which federal programs to examine, the auditor must first determine, based on specific criteria, whether the recipient is a high-risk auditee or a low-risk auditee. A high-risk auditee is a recipient which has a high risk of not complying with federal laws and regulations, while a low-risk auditee is the exact opposite.
Based on the results from this study, it is shown that auditor rotation has a significant impact on auditor independence (in a positive way). However, auditor tenure has a negative impact on auditor independence. There is evidence that shows the differences in the impact between short-term and long-term tenures on auditor independence.
Audit management oversees the internal/external audit staff, establishes audit programs, and hires and trains the appropriate audit personnel. The staff should have the necessary skills and expertise to identify inherent risks of the business and assess the overall effectiveness of controls in place relating to the company's internal controls.
External auditors may also be engaged to perform other agreed-upon procedures, related or unrelated to financial statements. Most importantly, external auditors, though engaged and paid by the company being audited, should be regarded as independent. Internal Auditors are employed by the organizations they audit. They work for government ...