1.

Abdinour husain Ibrahim

2. Mohamed abdirashid mohamed
3. Mohamud sulayman hassan
4. maryan ali sulub
5. Yasmin hassan abdirahman
6. Abdirahman dahir jama
• Course Financial auditing
• Semester 7 afternoon
1.Causes of information risks

Remoteness of Information When Information is obtained from others, the likelihood of it

being intentionally or unintentionally misstated increases.

Biases and Motives of the Provider If information is provided by someone whose

goals are inconsistent with those of the decision maker, the information may be biased in favor of the
provider . For example, when a borrower provides financial statements to a lender, there is
considerable likelihood probability that the borrower will bias the statements to increase the chance
of obtaining a loan
Voluminous Data As organizations become larger, so does the volume of their exchange
transections .This increases the likelihood that improperly recorded information is included in the
records transactions.
Complex Exchange Transactions the complexity of business transections might cause an
inability to analyze them, increasing information risks
 2. Professional ethics

o Ethics can be defined broadly as a set of moral principles or values.

Code of Professional Conduct provides both general standards of ideal

conduct and specific enforceable rules of conduct,
Independence: In the case of audit engagements it is in the public interest and, there fore
required by this code, that members of audit teams, firms and network firms shall be independent
of audit clients.
 Integrity : to be forward and honesty in all professional and business relations
Objectivity: to no bias, conflict of interest or undue influence of others to override
professional
Contin……………………………………………………………….

• Professional Competence and Due Care: to maintain professional

knowledge and skill at the level required to ensure that a client receives
competent professional service based on current developments in
practice, legislation and techniques
• Confidentiality: to respect the confidentiality of information
acquired as a result of professional and business relationships
and, therefore, not disclose any such information to third
parties without proper an specific authority
• Professional Behavior: to comply with relevant laws and regulations
and avoid any action that discredits the profession
 3. Qualified audit report

• The auditor concludes that the overall financial statements are fairly
presented, but the scope of the audit has been materially restricted or
applicable accounting standards were not followed in preparing the
financial statements
4.Objectives of conducting an audit of f.
statement

The overall objectives of the auditor, in conducting an audit of

financial statements are :
A. to obtains reasonable assurance about whether the financial
statements as a whole are free from material misstatement,
whether due to fraud or error, thereby enabling the auditor to
express an opinion on whether the financial statements are
presented fairly, in all material respects, in accordance with an
applicable financial reporting framework.
B. To report on the financial statements, and communicate as
required by GAAS, in accordance with the auditor's findings.
5.Audit program
An audit program is a set of directions that the auditor and its team
members need to follow for the proper execution (performance) of the
audit.
Or an audit program the list of audit procedures(process) for an audit
area or an entire audit is called an audit program.
The audit program always includes a list of the audit procedures, and it
usually includes sample sizes, items to select, and the timing of the
tests.
Purpose of audit program
Guiding audit staff in the audit work
Provide evidence of proper planning and recording audit work to be
done
6. Analytical procedure

Analytical procedures are a type of evidence used during an audit.

These procedures can indicate possible problems with the financial
records of a client, which can then be investigated more thoroughly.
Analytical procedures use comparisons and relationships to assess
whether account balances or other data appear reasonable compared
to the auditor’s expectations.
For example, an auditor may compare the gross margin percent in
the current year with the preceding years. Analytical procedures are
used extensively in practice, and are required during the planning and
completion phases on all audits.
Thank you
Thank you for
for your
your listening
listening
Thank you for your listening

Group
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