ALRAQABA . ISSUE 15
63
the nature of the company’s activity; developing
the audit plan and determining the audit tasks
for each member of the team; determining the
timeline and the number of auditors responsible
for carrying out the defined audit tasks; and
4.
identifying the internal and external difficulties
that an auditor may face in the company.
Second:
Internal Audit Phase
Having robust internal audit systems is vital
for ensuring the soundness of a company’s
business. It would also contribute to enhancing
trust and help to understand the stages under
which financial transactions are processed,
starting from phase one to the phase of
reporting. In addition, having efficient and
effective internal audit systems in a company
would facilitate the audit process and
considerably save time for SAB auditors in
carrying out their audit functions.
Third: Testing Phase (Inspection)
The accounting system consists of a range
of processes pertaining to the recording of
accounting data at the company level and the
preparation of final statements and accounts.
Those processes are subject to a specific
framework of foundations, rules, terminology,
and definitions in order to serve certain
objectives.
Further, the accounting system entails that the
company commits to maintaining the books and
records based on its size and activities, along
with providing the data required by the system.
In general, the components of an accounting
system are the financial accounts (which
are documents on financial transactions),
accounting classification (i.e., accounting
manual), books and records (i.e., journals and
ledgers), and interconnection/ relationships
between components (accounting system
instructions).
Audit proof of evidence and the means to
obtain such evidence:
It is necessary to obtain evidence for data
included in the financial statements in order for
the auditor to reasonably draw his/her opinion
on the validity of the presented data. There is
a range of methods that the auditor could use
in collecting information and obtaining proof of
Publications
