In the audit profession, everyone must know about the audit program, each audit firm will have its own audit programs, but all of them are based on a general program, then further developed, called is the “Sample Audit Program”
The universities that have trained audit major in Vietnam, currently, for various reasons, there are some schools teaching their students the Sample Audit Program or not.
In order to help students have more sources of knowledge, with a duration of 5 minutes, we would like to share an overview of the “Sample Audit Program for Financial Statement” in Vietnam as follows:
Firstly, the scope of application of the Sample Audit Program:
The scope of the Sample Audit Program is designed to assist audit firms and auditors in complying with auditing standards.
Application of the Sample Audit Program for performing audits of financial statements for independent enterprises in the manufacturing, trading, and service industries. However, the Sample Audit Program, could not replace the regulations on audit. Therefore, when applying the Sample Audit Program, audit firms and auditors must be pursuant to regulations on audit standard and relevant law in order to apply the audit process consistent with appropriate to the particular circumstances of the entity being audited. Concurrently, the auditor’s practical experience and professional judgment can be used to amend and supplement as necessary for each particular audit program.
Please be noted that the application of the Sample Audit Program is not mandatory but depends on the decision of the management board of the audit firm.
Secondly, the approach method of sample audit program:
The approach method of sample audit program is the “audit method based on risk assessment”. Accordingly, auditors and audit firms not only focus on normal “audit risks”, but also pay attention to the “business risks” of the enterprises being audited.
The audit method based on risk assessment helps auditors to focus their resources on the key contents and issues of the audit, in order to reduce audit risk to an acceptable low level. From there, the auditor will give an opinion based on science, improve the value and reliability of the audit reports.
Third, the audit progress:
The audit progress is a working process in compliance with audit standards, from initial management, audit acceptance to the conclusion, issuance of the audit report.
The progress is divided into 3 phases:
- Phase 1: Audit plan;
- Phase 2: Audit performance;
- Phase 3: Summarization, conclusion and preparation of reports.
We have just presented three most general contents, temporarily called “Introduction to the Sample Audit Program” to you who are preparing to enter the “real battle” with the audit profession.
