Audit-and-Assurance-II.pptxedfefefsferfw

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1. Presented by : Group 08 PRESENTED TO: Dr. Mallika Saha ASSOCIATE PROFESSOR DEPARTMENT OF ACCOUNTING & ACCOUNTING & INFORMATION SYSTEMS UNIVERSITY OF BARISHAL

2. 01 02 03 04 Zikrul Ahsan Walid . 20 AIS 059 Neksi Chakma. 21 AIS 077 Ummey Salma Pushpo . 2o AIS 074 Ema Afrin Sithi . 20 AIS 009 05 06 Ahsanul Kabir . 20 AIS 071 07 Mostafa al Hossain. 21 AIS 055 Tapan Chandra Adhikari. 21 AIS 08 Rashel Sheikh . 21 AIS 026 Our Team Members Sadiya Jahan Tisha . 21 AIS 049 09

3. Zikrul Ahsan Walid 20 AIS 059

4. • Early Years (Pre-20th Century) • Industrial Revolution (18th-19th Century) • Post-World War II Historical Background Evolution of the Operational/Management Audit Modern Operational Auditing (Post-2010s) Future Trends Historical Background

5. •1950s to 1970s: Formalization and Systematization Key Developments •1980s to 1990s: Integration with Management Strategy •2000s: Advanced Techniques and Technology Historical Background Evolution of the Operational/Management Audit Modern Operational Auditing (Post-2010s) Future Trends Evolution of the Operational/Management Audit

6. •Risk-based Auditing •Sustainability and ESG (Environmental, Social, and Governance) •Technology and Automation •Continuous Auditing and Real-time Monitoring •Integration with Business Performance Historical Background Evolution of the Operational/Management Audit Modern Operational Auditing (Post-2010s) Future Trends Modern Operational Auditing (Post-2010s)

7. • AI and Machine Learning in Auditing • Increased Focus on Cybersecurity • Agility and Flexibility Historical Background Evolution of the Operational/Management Audit Modern Operational Auditing (Post-2010s) Future Trends Future Trends

8. Planning Stage Data Collection Leadership and Governance Assessment Reporting Follow-up STRUCTURE of MANAGEMENT AUDIT

9. Data Collection Objective Definition Audit Criteria Audit Team Formation Audit Approach

10. Review of Organizational Structure Financial and Operational Analysis Document and Record Review Observation Data Collection Interviews/Surveys

11. Decision-making Processes Resource Allocation Risk Management Efficiency and Effectiveness Compliance and Controls Performance Measurement Leadership and Governance Assessment

12. Findings Recommendations Management Response Reporting

13. Action Plan Implementation and Monitoring Re-assessment Follow-up

14. Neksi Chakma 21 AIS 077

15. 1 Enumerate the effectiveness of the management 2 Implementation of principles and policies 3 Detect and examine the differences 4 Present recommendations for improvement Management audit is quite broad in comparison to a financial review as it not only analyses the finance but also other aspects of a company. It has the capability to assess management at different levels. The main scope of management audit are here by mentioned below: The Scope of Management Audit

16. 1 Defining the audit objective 2 Planning the audit 3 Developing audit criteria 4 Collecting data Management audits are a powerful tool for organizations seeking to enhance their management practices and operational efficiency. By following these steps, organizations can conduct thorough audits that provide valuable insights into their management processes, identify areas for improvement, and contribute to their strategic goals. However, the success of a management audit depends on the commitment of senior management to the process and their willingness to implement recommended changes. A management audit is not a one-time activity but part of an ongoing effort to improve organizational performance and achieve strategic objectives. Objective of Management Audit 5 Enumerate the effectiveness of the management 6 Implementation of principles and policies 7 Detect and examine the differences 8 Present recommendations for improvement

17. Objective of Management Audit 5 Analyzing data 6 Evaluating risk 7 Preparing the audit report 8 Presenting findings and recommendation 9 Enumerate the effectiveness of the management 10 Implementation of principles and policies

18. Objective of Management Audit 9 Implementing Change 10 Follow-up and review

19. Ahsanul Kabir 20 AIS 071

20. External Problems Internal Problems Need of Management Audit

21. Problem of Competitors Financial Problems Problems of Sales Customer Relationship Problems of Suppliers Problems Concerning Shareholders External Problems

22. Problem of Initial Recruitment Problems Relating to Rights and Responsibilities Performance Related Problems Problems of making decision and plans Problems of Communication Much Paper Work Internal Problems

23. Qualities of a Management Auditor Comprehensive Proficiency Multi disciplinary Charismatic Expertise Profound Knowledge Insightful 1 3 5 7 2 4 6

24. Ummey Salma Pushpo 2o AIS 074

25. Reviewing Management processes Reporting and Recommendations Identifying Risks and Opportunities Assessing Internal controls Analyzing performance Metrics Function of management Auditor

26. Organizational goals Legal compliance Clarity and transparency Regular Feedback and Communication Training and Development Performance Measurement Continuous improvement Determining The Standards of performance

27. Mostafa al Hossain 21 AIS 055

28. Mechanism of Audit Introduction to Audit Definition: An audit is a systematic and independent examination of financial records, processes, and systems. Purpose: To provide assurance that financial statements are accurate and compliant with regulations.

29. 04 Performance Audit 02 External Audit 01 Internal Audit 03 Compliance Audit Types of Audit

30. 1 iudhuhwjxnxbxnxnbncbdcbsdb 1 iudhuhwjxnxbxnxnbncbdcbsdb 1 iudhuhwjxnxbxnxnbncbdcbsdb 1 iudhuhwjxnxbxnxnbncbdcbsdb 1 iudhuhwjxnxbxnxnbncbdcbsdb 1 iudhuhwjxnxbxnxnbncbdcbsdb Objectives of an Audit

31. 1 Ensure accuracy and reliability of financial statements. 2 Detect and prevent errors or fraud. 3 Evaluate the effectiveness of internal controls. 4 Ensure compliance with laws, regulations, and standards. 5 Provide stakeholders with confidence in the organization’s integrity. Objectives of an Audit

32. 4.Follow up 3.Reporting 2.Execution 1.Planning Stages of the Audit Process Understand the business environment. Define audit scope and objectives. Develop an audit plan and risk assessment. Collect evidence through testing and observation. Evaluate internal controls and processes. Summarize findings. Provide recommendations and opinions. Ensure implementation of recommendations. Monitor improvements and recurring issues.

33. 4.Follow up 3.Reporting 2.Execution 1.Planning Stages of the Audit Process Understand the business environment. Define audit scope and objectives. Develop an audit plan and risk assessment. Collect evidence through testing and observation. Evaluate internal controls and processes. Summarize findings. Provide recommendations and opinions. Ensure implementation of recommendations. Monitor improvements and recurring issues.

34. 4. Analytical Procedures 3. Substantive Testing 2. Internal Controls Testing 1. Risk Assessment Key Audit Mechanisms Identify and prioritize risks. Align audit efforts with high-risk areas. Evaluate effectiveness of control systems. Identify weaknesses or gaps. Examine transactions and account balances. Verify accuracy and completeness. Compare financial data over time. Investigate unusual trends or variances.

35. 4. Analytical Procedures 3. Substantive Testing 2. Internal Controls Testing 1. Risk Assessment Key Audit Mechanisms Identify and prioritize risks. Align audit efforts with high-risk areas. Evaluate effectiveness of control systems. Identify weaknesses or gaps. Examine transactions and account balances. Verify accuracy and completeness. Compare financial data over time. Investigate unusual trends or variances.

36. 4. Reconciliation 3. Interviews and Observations 2. Data Analytics 1. Sampling Tools and Techniques Random and judgmental sampling. Leverage software for pattern detection. Engage with stakeholders to understand processes. Cross-check balances and transactions.

37. 4. Reconciliation 3. Interviews and Observations 2. Data Analytics 1. Sampling Tools and Techniques Random and judgmental sampling. Leverage software for pattern detection. Engage with stakeholders to understand processes. Cross-check balances and transactions.

38. Tapan Chandra Adhikari 21 AIS 069

39. Internal Audit An Appraisal activity established or provided as a service to the entity. Its function include, amongst other things, examining, evaluating and monitoring the adequacy and effectiveness of internal control. External Audit An audit carried out by an external, as opposed to an internal auditor. Remember that the objective of an external audit of financial statements is to enable auditors to express an opinion on whether the financial statements are prepared (in all material respect) in accordance with the applicable financial reporting framework.

40. The activities of the internal audit function usually involves: Monitoring internal controls Examining financial and operating information Review of the economy, efficiency and effectiveness of operations Review of compliance with laws, regulations and other external regulations Special investigations, for instance, into suspected fraud Identifying and evaluating significant exposures to risk and contribute to the improvement of risk management and control system

41. Difference between internal and external audit Internal Audit External Audit Reason Internal audit is an activity designed to add value and improve an organization's operations. Exercise to enable auditors to express an opinion on the financial statements. Reporting to The board of directors, or the audit committee, which is a sub committee of board of directors. Shareholders of a company. Relating to The operations of the organization. The financial statements. Relationship with the company Employees of the organization, although sometimes the internal audit function is outsourced. Independent of the company and its management. They are appointed by the shareholders.

42. Ema Afrin Sithi 20 AIS 009

43. Basic Principles of Internal Auditing Independence Objectivity Integrity Due professional Confidentiality Competence Risk based auditing

44. Functions of Internal Auditors 1. Evaluating Internal Controls 2. Risk Assessment and Management 4. Operational Efficiency and Effectiveness 5. Financial Auditing 6. Fraud Detection and Prevention 7. Advisory Role 9. IT and Cybersecurity Audits 10. Special Investigations 3. Compliance Assurance 8. Monitoring and Reporting

45. Functions of Internal Auditors 1. Evaluating Internal Controls 2. Risk Assessment and Management 4. Operational Efficiency and Effectiveness 5. Financial Auditing 6. Fraud Detection and Prevention 7. Advisory Role 9. IT and Cybersecurity Audits 10. Special Investigations 3. Compliance Assurance 8. Monitoring and Reporting

46. Rashel Sheikh 21 AIS 026

47. Division of Work Ensures Optimum Use of Resources On going Review More Effective Management Performances of Staff Improve Advantages of Internal Audit

48. 1.Educational Qualifications 2.Professional Certifications 3.Experience 4.Knowledge of Regulatory Frameworks 5.Technical and Analytical Skills 6. Ethical Standards and Independence 7. Communication and Reporting Skills 8. Continuous Professional Development (CPD) Qualifications for internal auditors

49. Sadiya Jahan Tisha 21 AIS 049

50. Definition 01 Purpose 02 Scope 03 Frequency 04 Key Users 05 Contrast of Internal Auditing & External Auditing

51. Do You Have Any Questions?