ASSOUMOU KOUAME JOSE

AUDITING
Dr BOGUI

FINAL EXAM

1) Diagrame of an audit

plan audit

understanding of client
and its environmental
includint internal control

assess risk of
mistatement and design
further test

perform test of control

perform substantive
procedure

complete the audit

issue audit report

Step 1 consist to do a planning of the audit of your company how you will work with the
client and schedule the process of your auditing . in step 2 , like it said the auditor want to
understand how the company perform in which field it is specialized with how the inter nal
control .
And then in step 3 and step 4 , the auditor will analyze in which part in the internal control it
can have misstatement and after the auditor will made a test and perform it on the
company to find if there is no misstatement before .
Step 5 , the auditor check the validity and completeness of the financial record of the
company , it detect wether there are any material misstatement .
In step 6 , the auditor will do a bank reconciliation of the company and start to write his
report and give an opinion to the company . and to finish , in the step 7 , the auditor give to
the entity her report about the company .

2) It is important for a company to be audited by a CPA because a CPA has more

expertise to find any problem in the financial statement of a company . it’s like a
guide for the company . As benefit , the CPA protect the asset of the company , he
permit to have a good internal control , minimize the risk of misstatement . And
another benefit , without a CPA’s report , you can’t do some transaction with the
bank .

3) The various types of audit opinions are :

 Unqualified opinion : this a good opinion by an auditor , it’s when there is no

material misstatement in the entity .
 Qualified opinion : it ‘s also a good opinion but there is little error in the
financial statement of the company
 Adverse opinion : it ‘s a bad opinion , it’s when there is non conformity with
GAP and inadequate disclosures .
 Disclaimer opinion : it’s also a bad opinion , it’s when there is no limitation or
restriction of the scope of the examination