audting

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
I have just done my assesmant for Auditing and was asked to explian to a junior the meaning of a qualified opinion as they did not understand how we could give an opinion when we have not checked every transaction. Help

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    audting

    Im not quite sure what you mean?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    audting

    Auditing revolves around compliance with policies/ procedures and in most cases results in an 'opinion' of whatever the auditor's reviewed.<BR><BR>For example, at my workplace we have 4 opinions ranging from 'Full Assurance' to 'No Assurance'.<BR><BR>To provide Full Assurance, the auditor would have to be completely satisfied that the material he's looked at offers minimal/ acceptable risks to the client and on the other hand in providing No Assurance, he's saying that the policies/ procedures offer no protection at all.<BR><BR>To check every transaction in any system is unrealistic - most audits will select a random sample and carry out testing of those documents, for example, purchase orders, sales invoices etc...<BR><BR>The opinion is what an audit committee will look at initially and sometimes all they'll look at. Obviously where there's No Assurance or Limited they'll be looking at why and how the auditor's arrived at that opinion.<BR><BR>So...audit = delivering a qualified opinion on a clients procedures.<BR><BR>Hope that helps - Pete.<BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    audting

    Is this at intermediate NVQ3 level?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    audting

    Hi Charmaine - It's at Tech level - no worries for Intermediate, it doesn't get a mention.<BR>Pete.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    audting

    Thanks nearly had a panic attack!

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