Controlling the level of professionalism of auditors

The theoretical part. 3

1. Control of the level of professionalism of auditors. Rights and responsibilities of audit firms 3

2. The essential terms of the contract. Other terms of the agreement. The standard form of contract 11

The practical part. 16

JSC "Autoworld" and auditing firm "Audit" concluded a contract for the audit of financial and economic activity of the society and validation of the accounting (financial) statements for 2005. The main activity of "Autoworld" is the production of parts for automobiles.

Key performance indicators and financial results are presented in Tab.1 and 2 (as of January 1, 2006).

Using rules (standards) of audit activity "Materiality and Audit Risk", select a baseline for calculating the level of materiality for the "Autoworld", and set the maximum allowable limit mistakes in reporting, given the specificity of the financial and economic activities of "Autoworld", using Chart 3 .

A single indicator of the level of materiality is distributed between the articles of organization proportional to its structure, using Chart 4 and 5.

Analyze and evaluate the identified during the audit factual errors, compare them with the maximum permissible size errors in the financial statements of "Autoworld".

Do conclusion of importance identified in the audit violations.


References 23