Planning
Auditors begin by carefully planning the audit. They learn about the client’s business, flag potential risks, and develop procedures to mitigate them. This gives a very big picture context so the audit not only looks at the right areas but it also knows what to expect within those areas. Proper planning saves time and enables auditors to do their job efficiently. It also offers that the audit effectively meets its objectives.
Evidence Collection
Gathered strong relevant evidence based on Business needs and strategy. They do so use tests of controls, substantive procedures and analytical review. This step allows them to validate the accuracy of financial records. Evidence collection, auditors must collect a cover weight to make credible conclusions about the financial statements.
Evaluation
The evidence auditors collect is closely scrutinized. They care if the evidence aligns with the truthfulness of the financial statements. This process enables them to discover errors, fraud or mismanagement; Evaluation makes sure that all audit results are just and supportable by valid evidence. It also prepares auditors for the final stage.