AUDITTA GLOBAL WORLDWIDE is a member of:
Other audits
OTHER AUDITS
REVIEWS AND SPECIAL REPORTS
AUDIT OF AGREED PROCEDURES
The objective of an agreed procedure work is for the auditor to carry out audit procedures previously agreed with the company, which have been agreed between the auditor and the company, for a particular purpose, and for which the auditor issues a report containing the outcome of the findings, without giving an opinion on it.
Agreed procedures can refer to a wide range of concepts:
- Fixed Assets (valuation, depreciation, impairment, inventory),
- Stocks (stock_take, valuation, impairment),
- Accounts receivable (balances, seniority analysis, reconciliations),
- Accounts payable (balances, reconciliations),
THE LIMITED REVIEW
The limited review
consists of an examination of the accounting statements that, through the application of a particular set of procedures, allows us to report on whether or not it has found significant exceptions to appropriate accounting practices and standards and other facts that may come to their knowledge, which could substantially affect the financial statements.
The scope of a limited review is substantially less than that of an audit since, unlike the agreed procedural work, a limited review does not agree on the procedures to be carried out with the client, but is determined by the auditor himself based on the circumstances and risks associated with the client and, therefore, it is the auditor's responsibility to determine the nature and scope of the procedures that apply.
We can say that the limited review is a review of the specific areas in which the auditor believes that there may be risk and in which, through analytical and review procedures, obtain reasonable assurance of the specific areas in relation to the veracity of the information and that it is error-free and that it is error-free, although no audit opinion is issued.
Such works are regulated in ISA 2400 "International Rules for Limited Reviews". Although limited reviews do not provide the same security as an audit, they are often cheaper and can equally meet the needs of some of our customers.
Group audits by non-significant components are a common example of limited review, looking for an answer for instance to the following questions:
- Are we correctly amortizing our investments?
- Have our assets depreciated?
- Are we properly valuing our stocks?
- Is our internal control adequate?
- Is our internal control in the Purchasing area adequate?
It depends on your need, AUDITTA GLOBAL WORLDWIDE
will design one type of revision or another.
