Intermediate Auditing

Assessment one-Major Assignment (Essay) (15%) Jim Andrew

Introductory

In these assignment we make reference to the function and roles of the Internal Auditor and
external Auditors in its capacity as the key players relating to the organisation
Administration, Operation and its systems and the core function of the management
efficiency and productive output of the Organization that must be reviewed thorough the
various Audit process within the Organization or from the Independent External Auditor for
its opinion for the management to make decision. The role of an Auditor thus provides
significant assurance for the management, the operation and the administration to take
heed of the opinion to address process and Procedures that was not in compliance with set
policy, regulation. We can be assured that without the Auditing being conducted through
various category auditing process , Compliance Auditing, Procedural , Management , Matric
Analysis and the list goes on will not ascertain, provides assurance, etc. on the weaknesses
in the overall function operation of the organization. In this part of the statement, in my
view Audit plays key role in providing the opinion of the, Financial Statement, Process and
Procedures, legal requirement of Purchases etc. to determine the risk involved and so In this
essay Iam going to define the topic of internal Auditor from external Auditor and Auditing
nature activities can be identified below.

Audit is defined, as an assurance assessment and evaluation of the process and procedures
in the system regulatory rules that governs the Management operation and Administration
function of an organization, so as to authenticate the evidence from related source to
ascertain and develop opinion based on the finding for management decision not conclusive
until factual evidence is substantiated.

The Nature of Auditing developed overtime have concluded that the performance in
working environment has affected the way we do things and therefore a review for the
system process and procedures must change to fit in with the working environment, there
by developed standard code of conduct is set so as the regulatory process by law and
instruction adhered to subject to changes through Legislation.

The objective of Auditing is to provide a high level of assurance services, provide moderate
level of assurance, to issue a report of factual findings , that is why audit is indeed required
by an individual and both the Government Organization and private sectors and cooperate
bodies, Association etc.
Auditing is an art developed to provide for specialist field of areas and comes in varieties of
forms for presentation to the users for specific matters for the management and boards and
Cooperate bodies to review and take appropriate measures.
The Internal Auditor and the internal Auditor’s role is to plan organize the Audit program
for various activities of the Organization and provide the report to the management of the
organization.

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The internal Auditor’s role is to plan organize the Audit program for various activities of the
Organization and provide the report to the management of the organization.
The external Auditor provide an audit on a prescribed description of the activity
inconformity with the Policy and regulatory process of law and instruction of the Authority
of the organization to prepare an independent audit report .The importance of the Audit of
Financial Statement to the users of the report is to ensure there is no bias and conflicting
and distorted statement is produced.

There are various type of Audit that are of importance to the end users and they are as
outlined blow with the description provided one (1) example for each type.
The Financial Statement Audit is the General Principals Governing an audit of financial
statement state that the objective of and audit of financial statement is to an able the
auditor to express an opinion as to whether the financial statements are prepared in all
materials respects, in accordance with an identified financial frame work.
The Compliance Audit, is a compliance audit is an audit of an entity’s programs , operation
or activities to assess compliance with specific conditions which are impost upon and govern
these program operation or activities, The conditions specified may be either external , for
example , the requirements of a contract or internal for example management policies.

Performance audit is an independent systematic examination of all or part of an entity’s

program, operation, Activities to asses’ economy and /or efficiency and or effectiveness, the
examination and reporting can relate to any or all of the following.
The adequacy of management systems controls and practises, including those intended to
control and safeguard assets to ensure due to regard to economy, efficiency and
effectiveness The extent to which resources have been managed with due regard to
economy and efficiency and The extent to which programs, operations or activities of and
entity have been effective, particularly in achieving their objectives. Performance auditing is
often referred to as value for money auditing or operational auditing

In an audit of prospective financial information, must obtain sufficient appropriate audit

evidence concerning whether: Managements best estimate assumptions are reasonable for
the preparation of the prospective financial information. The prospective financial
information is properly prepared based on these assumptions. The prospective financial
information is properly presented and all material assumptions are adequately disclosed
including whether best estimate or hypothetical assumptions have been used; an audit
financial information. The prospective financial information is prepared on consistent basis
with historical financial statements.

The general overview of the different types audit approach is provided for by different types of
organization, from government organization, cooperate Entity, types of companies who are all
subject to internal company policy, whilst all are subject to regulatory control by the company Act
and external control agency to set standard for precise, complexity nature of audit and provide
comprehensive and quality audit practise. Audit is paramount to assist the users to make
appropriate decision from and to bring about economic benefit to the organization internally and
externally under the legal frame work and prepare from historical information to develop
prospective financial information that is realistic in the long term.
The statement for true and fair view is derived from the Audit report from either Financial
Statement, Performance Audit and other types of Audit that was authenticated,

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 ascertained expressed to be fair and realistic is viewed to be true and fair view. The audit
report planned and executed in accordance with the Organization Policy, regulatory rules
and that all process and procedures was performed exceptionally by virtues of financial
regulation and administrative and management directives and control was adhered to for
end users to say this is a true and fair view .(this is auditor’s opinion view)
The Categories of Audit report and Audit Process. The Audit report is the principal’s
means of communicating between the auditor and the financial statements users. As such
emphasis must be placed on the audit report, providing the financial statement users with
both sufficient and appropriate information to aid their decision making process. If the audit
report cannot communicate the auditor’s opinion effectively, then all the benefit of
undertaking the audit will be lost. Audit Process is diversified and with specific Plan/scope
for audit areas with set chain of flow of process connected through various stage for
effective and assured information that is required by the organizatio n.
The Audit Process show below.
Audit Reporting

Audit Planning Evidence Gathering

Evaluation of Accounting In CIS Environment

Planning and Risk
and Internal control system General Principal
Evaluation

The Audit process require good quality planning, having wider understanding of the purpose
of and how effective an Audit can be conducted given the time frame to execute the Audit.

8. The Annual Report for Amazon Web Services in 2011.

There, we have discussion paper for the Amazon Incorp for the 2011 annual financial statement is
related to the consolidated report of the Company Incorp. The Company provided the overview of
the Companies affairs involving its Business Affairs & Management and certain risks involved. For the
Fiscal Financial year 2011.Part 1 – refer detail as per the statement. Item15, exhibit financial
schedule.

The Financial statues for the three year period 2009-2011

From Part 1to part 1V produced a Financial Statement Consolidated Report highlighting key
components of the programs that require review by the Company as there are risks and
competition is prevalent. The Category of the Audit report in relationship to the annual
report derives from the main parts of the report in relation to the function. Report of
Independent Registered Public Accounting Firm

The Board of Directors and Shareholders Amazon.com, Inc.

Amazon.com, Inc.’s management is responsible for maintaining effective internal control
over financial reporting, and for its assessment of the effectiveness of internal control
over financial reporting included in the accompanying Management’s Report on Internal
Control over Financial Reporting.

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Therefore, we have audited the accompanying consolidated balance sheets of
Amazon.com, Inc. as of December 31, 2009 - 2011, and the related consolidated
statements of operations, stockholders’ equity, and cash flows for each of the three years
in the period ended December 31, 2011. Our audits also included the financial statement
schedule listed in the Index at Item 15(a) (2). These financial statements and schedule are
the responsibility of the Company’s management. Our responsibility is to express an opinion
on these financial statements and schedule based on our audits.

Conclusion
Therefore, in my view the Audit provided its opinion of the internal from external auditor
key elements of the Company indicated above, auditor process and procedure, legal
requirement of purchase of an audit enhances the reliability of the financial information
contained in financial statements and accompanying notes (a report). The increased reliability
derived from should assist users of the financial report in their decision-making. It should
also assist in assessing whether those responsible for the presentation of the financial report
have discharged their accountability obligations. Thus,
Highlighted the Consolidate balance sheets of various function and activities of the
Company and the operations, stockholders equity and the annual cash flow of the three
years of and the Financial Statement to date of reporting from 2009 to 2011.There are
different category of Audit provided by the Audit for the company which must conform to
the Standard company regulation or Act. The ONUS of the Audit report is subject to the
Management of the Company as the Audit has provided its opinion of the Company’s
Financial Statement, with any disclosers.

References
Auditig Text Book. (2019). In J. Andrew, Intermediate Audit (pp. 1 - 4). port moresby: International
Training Institute.

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Bezos, J. P. (2011, Decenber 31). Introduction To Auditing. Retrieved from Amazon.com:
http://www.com

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