Audit and Assurance
In addition to statutory compliance audit, we also perform due diligence reviews, efficiency and effectiveness reviews, forensic accounting and investigation reports, litigation support, schemes of arrangement and other special audits.
Our Audit Approach
Our audit approach is risk-based, tailored to address the operational risk areas and any regulatory requirements of your business. We concentrate in not only understanding our client’s business but also the environment in which they operate.
In planning the audit, we gain an insight into the client’s operations and controls, identify and assess the areas which are significant to the business and therefore our audit effort is directed to areas with a higher potential for material error and minimise audit procedures where the likelihood of material error is minimal.
Such formal risk analyses will enable us to assess the likelihood of significant errors occurring in important financial areas.
The administration, coordination and planning process of the audit assignment involve:
- Preparing resource allocation budget and scheduled timetable
- Assessing the control environment to determine the extent of reliance to be placed on the internal controls, if available.
- Identifying key audit risk areas.
- Determining the audit strategy and approach based on the preliminary findings. The audit programmes will then be tailored accordingly.
- Allocating tasks to audit team members and briefing them on the audit approach, nature and scope of work to be done and the time frame available.
Any weaknesses identified during the course of the audit will be conveyed to Management in the form of Management Letters for client’s comments, together with our recommended solutions.
We place great importance on identifying areas of improvements in matters of control weaknesses as well as when there can be commercial benefits. We will make constructive and practical recommendations and follow through the action(s) taken. Our letters will be submitted following the completion of the audit and this formal process will be in addition to meetings and discussions held as issues are identified. All recommendations will first be discussed with senior management to ensure that all matters are properly documented.
It is our policy to liaise with our clients’ internal auditors, where available, so as to avoid duplication of effort and to draw on their knowledge of the operations.
As a first step, we will make contact with the key people in these departments with a view to assessing their structure, staffing and work programmes. We will then work closely with these departments to ensure that the most effective combined audit is performed.
We are conscious that senior management may be unfamiliar with or may have concerns over the process and costs of changing auditors.
We will attempt to smoothen the process and assume our audit responsibilities as quickly as possible, with careful attention to planning.
The timing of our visits will be dependent on the clients’ timetable for finalisation of the audited accounts, and we will organize our resources accordingly to ensure that all deadlines are met.
Our work is expected to be carried out in three main phases – planning, interim and final audit. Audit planning will commence soon after our appointment is confirmed and the necessary professional clearance obtained from the retiring auditors and any regulatory authorities, as appropriate.