Video Library - External Audit and Audit Services

external audit and audit services. 

The effect of risk and materiality on the size of the documentary sample

The selection of the documentary sample in the audit is of importance to the auditor due to its impact on the volume of effort expended to express an opinion on the financial statements in light of the identification of audit risks and relative importance

Evidence of evidence in the external audit

The concept and characteristics of the evidence and the technical methods of assembling them

Planning the review process and evaluating the results

The planning stage is considered one of the most important stages affecting the achievement of the objectives of the external audit process and reaching a sound report on the results of the audit process

Risk Matrix in External Audit

Determining the degree of risk in the audit process would enable the external auditor to perform his role with the highest efficiency, at the lowest possible cost, and in the shortest time

Identifying Risks in the Planning Phase of the Review - Part 2

The risk in the external audit..is the degree of uncertainty of the auditor about the fairness of the financial statements when carrying out the audit process..or in other words, the possibility of expressing an incorrect opinion on the audited financial statements, due to the auditor’s failure to discover material errors that may It is on those lists that he expresses his opinion

Evaluate the results of the review process

Evaluating the results of the audit process.. It is the last stage of the external audit process, which reflects the opinion of the external auditor on the financial statements, through which a letter is sent to the management of the facility with the result of the audit process and what the auditor’s opinion has reached.

Examples of Operational Procedures in the External Auditor's Working Paper

The external auditor’s worksheet includes many detailed procedures to reach the final opinion on the item’s share – these procedures depend mainly on good planning for the audit process and identifying high-risk items to focus on – with the need for a large degree of experience with the auditor to carry out these procedures properly.

Item revision notes in the External Auditor's worksheet

The observations mentioned by the external auditor in the item review worksheet reflect the auditor’s opinion on the validity of this item and the resulting review notes on it and the extent of the importance of these observations in forming the final opinion and the auditor’s report in general

The concept of materiality in the planning stage of the review process, part one

Determining the relative importance in the planning process for the external audit process is considered as one of the most important pillars for the success of this process and for the auditor to express a sound opinion on the financial statements

External Auditor Working Paper

The concept of the working paper in the work of the external audit is that it is the tool that reflects the extent of the auditor’s commitment to exercise professional care in verifying the validity of the financial item subject of the audit process … and clarifying the executive

The concept of materiality in the planning stage of the review process, part two

Determining the relative importance in the planning process for the external audit process is considered as one of the most important pillars for the success of this process and for the auditor to express a sound opinion on the financial statements

Identifying Risks in the Planning Phase of the Review - Part 1

The importance of planning the audit process is to reach sufficient assurance about the financial statements at the lowest possible cost and to avoid misunderstanding with the client

General framework of the external review process

The external audit means resorting to an accounting and auditing expert from outside the institution to perform a professional examination and audit all accounting books and documents owned by the company.

Companies summon the external auditor to express his fair, impartial and expert opinion on the credibility of these documents and their consistency, discovering their errors, and showing the extent of their data inconsistencies.

This opinion must be fully explained in a final report recording his decision on the correctness of the financial statements and accounts.

Reports are the most important tasks of the external auditor. The auditor issues these reports to entrepreneurs and investors to ensure their investments’ success and their goals’ achievement.

This made the external auditor one of the most important pillars that business owners rely on in their work. Big companies depend heavily on external audits.

The volume of medium-sized companies’ operations ranges between 50 and 200 million pounds per year. These companies often did not register their investments in the stock exchange. The external auditor may encounter problems while applying the audit to medium-sized companies due to the company’s inconvenience with some external audit standards. So, we find that average companies do not benefit from external audits until after a significant time.

Sometimes, medium-sized companies are unaware of the proper accounting system and financial statements. For example, when a client applies for an external audit, we discover the absence of essential accounting books and others. Our role here is to organise and modify this system to fit the audit process with our team’s extensive experience and following international auditing standards.

To start the external audit process, contact us. We will start the review as soon as the required procedures are completed and after carefully studying your request to decide whether or not the request for an external audit is approved.
In the event of acceptance, the chartered accountant selected from our team will start implementing the stages of the external audit steps, which will begin with the planning stage.

Our team also considers many essential matters within the audit to ensure the accuracy and usefulness of the client’s company.
The stages of external audit differ from one company to another according to the type and nature of the process, such as the difference in the audit item, whether it is a budget item or an income statement item, and the different nature of this item and its risks.

Also, the external audit has many criteria that must be carefully studied, including the nature of the activity, the extent to which the external audit can be applied, as well as the experience of the chartered accountant in this activity.
All of these criteria and obstacles affect, in one way or another, the outcome of the audit report. A chartered accountant needs a lot of learning and practice to become a trusted external auditor for companies. We have achieved this through more than fifteen years of hard work and experience with the strongest team of the largest accounting office in Egypt and the Middle East, “Egyptian Certified Public Accountants”.