FINANCIAL AUDIT METHODOLOGY - World Bank Internet …财务审计方法-世界银行网络….pptVIP

FINANCIAL AUDIT METHODOLOGY PETER CARLILL UK NATIONAL AUDIT OFFICE ROLE OF NAO To provide independent information, assurance and advice to Parliament on the use of public resources To help promote better financial management and value for money BODIES AUDITED CAG audits: 600+ financial statements covering ￡456 billion Revenue of ￡337 billion Assets worth ￡203 billion Long term\liabilities of ￡37 billion FINANCIAL AUDIT Audit Opinions Reports on Accounts Advice and guidance PERFORMANCE AUDIT How well Government policy is delivered In particular: Economy Efficiency Effectiveness IMPACT Savings of over ￡8 every ￡1 spent by the NAO ￡1.4 BILLION saved over the last three years Over 90 PER CENT of PAC recommendations accepted WHY HAVE A METHODOLOGY? Ensures Auditing Standards are applied Ensures consistency across the NAO (600+ accounts) Helps achieve a quantifiable level of assurance (95% confidence level) UNDERSTANDING THE BUSINESS AUDITING STANDARD In performing an audit of financial statements, the auditor should have or obtain a knowledge of the business sufficient to enable the auditor to identify and understand the events, transactions and practices that, in the auditor’s’ judgement, may have a significant effect on the financial statements. UNDERSTANDING THE BUSINESS THREE AREAS TO CONSIDER: Ministry’s external environment Legislative framework Overall control environment within the Ministry UNDERSTANDING THE BUSINESS AUDITING STANDARD The auditor should apply analytical procedures at the planning stage to assist in understanding the business and in identifying areas of potential risk. MATERIALITY AUDITING STANDARD Materiality should be considered by the auditor when: a) determining the nature, timing and extent of audit procedures and b) evaluating the effect of misstatements MATERIALITY An audit needs to be planned and conducted so as to provide reasonable assurance that the financial statements are free from material misstatement. A matter is consi