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Post Audit Review Process
11-04-2015
Auditing refers to a systematic and independent examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditing has become such an ubiquitous phenomenon in the corporate and the public sector that academics started identifying an "Audit Society".The auditor perceives and recognizes the propositions before him/her for examination, obtains evidence, evaluates the same and formulates an opinion on the basis of his judgment which is communicated through his audit report.
The final step in the audit process is the audit memorandum which summarizes each phase of the audit and gives your reader recommendations for changes that will improve the accuracy of the records and profitability of the company. Writing an audit memorandum requires in-depth knowledge of the business and the attention to detail required to compare records with reality.
All audits with concerns and recommendations are required to have a Post-Audit Review. The post-audit review process is intended to ensure that management has addressed all recommendations included in the Audit Report. The Post-Audit Review takes place soon after the agreed implementation deadline to which management has committed in the management response. During the review, Internal Audit tests the effective implementation of each audit recommendation.
If recommendations have not been satisfactorily addressed, a second Post-Audit Review is scheduled. This process continues with successive Reviews until either the recommendation has been implemented or the circumstances giving rise to the concern have changed.
The results of each Post-Audit Review are summarized in a memorandum that is sent to every member of the Board of Directors.
Footnotes: Footnotes: This column is presented as a general source of information only and is not intended as a solicitation for business. It is always recommended that you consult a qualified tax professional beforeembarking on any of the suggestions outlined above. Mohammed Yasin, CGA, is the principal of M. Yasin & Co. Inc., Certified General Accountants and has offices in Vancouver & Surrey,B.C. For more information on this topic or any other taxation matters, please contact taxes@alameen.ca.
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