An audit is the collection, evaluation and disclosure of evidence relating to economic activities and events to the users of the information users, in order to indicate and report compliance with the prescribed criteria for the economic activities and events of an entity’s economic activities and events.
The types of control are 3.
- 1-Financial Audit (Control of Financial Statements)
- 2-Procedural Audit (Compliance Audit
- 3-Performance Audit (Activity Audit)
Financial Tables Auditing
Job Description for the Audit Matrix is the Financial Statements given to partners or tax offices. The audit is carried out by independent auditors, public auditors.
An entity’s financial transactions and activities; Determined methods are to be examined in order to determine whether they are in compliance with the Regulations.
Activity Audit: (Performance Audit)
is to examine the manner in which procedures and methods related to these activities are applied to assess the efficiency and effectiveness of an enterprise’s activities. The operational results are compared with the efficiency standards and it can be seen whether the operator has achieved the pre-determined goals and objectives. The scope of the audit can be a whole or a part of the operator, a branch or a department such as production, finance, marketing. proposals for increasing efficiency and efficiency in activities as a result of the audit. The activity audit is carried out by the internal auditors in the private sector and the public auditors in the Public Sector.
Audit Types by Status
- Inner control
- Public Audit
- Independent auditing
It is a valuation function established within the enterprise to examine and evaluate the activities of the operator for the purpose of servicing the business. Internal audit activities include financial audit, conformity audit, and audit activity. Assess whether the internal control system is operating as established by measuring compliance with management policies, plans and programs of internal audit operations. .Evaluate whether resources are used economically
It is classified according to auditing purposes, scope and auditing units. The public inspection bodies engaged in the supervision duties are: State Inspection Board -Spring Board-High Supervision Board of the Prime Ministry
Audit work conducted by persons working on their behalf or who are partners of an audit company to specify the degree of conformity of the company’s financial statements to generally accepted accounting standards is defined as an independent audit. This audit has been given 2 md.SMMM and YMM of Law No. 3568.
Other Perspective Audit
The accounts and transactions of shareholders and subsidiaries are reviewed by independent auditors in accordance with the auditing principles and standards, and whether the financial statements reflect the facts and are linked to the report. Types of independent auditing involved: Continuous auditing Independent limited auditing, Custom audit.
It is the whole of the annual financial statements which are required to be prepared and disclosed to the public. It is a mandatory audit every year.
Spy Or Independent Auditing By
The balance sheet and income statements are the audits of the institutions between six months.
The financial statements of the partnership and subsidiary bodies which have the obligation to perform special audits and which will constitute the permission of public offering of the securities given on the applications of the Board and based on the merger, transfer or liquidation decisions of the general assemblies or their authorized bodies shall be audited by the independent auditing organization in accordance with the capital market legislation.
VAT refunds and deductions arising from deliveries made on export deliveries and export records, revaluation transactions, additions of revaluation funds to capital, transactions held exempted from tax exemptions through investment discount exemption, VAT arising from exemptions related to removals return and offset transactions. VAT invoice for deliveries and services to supplements. VAT ‘s exceptions and income from corporate income transactions related to income.
General Approved Auditing Standards
Standards accepted by professional organizations and to which auditors are obliged to comply with each audit are generally referred to as audit standards. These; 1-General Standard. 2-Workplace standards. 3-Reporting standards. It is divided into 3 to be.
They are the standards related to the qualifications and the work of the auditor. These standards influence the auditor’s work area and reporting, such as measuring the auditor’s expertise, independence and professional behavior. General Auditing Standards: -Vehicle training and competence -Independence, -The attention given to the product is required.
Vocational Education and Competence Standard
It means that the supervisor has studied at least at the undergraduate level and that the professional experience has passed the continuous professional training while continuing his / her profession to perform independent auditing. The auditor should follow legislation, in particular accounting, auditing and tax matters, read professional publications, participate in courses and seminars.
A conflict of interest between business managers and information users requires that the audit be performed without regard to supervised business managers and information users. For this reason, the principal feature of the auditor is independence. The independence auditor is to be honest and impartial in his / her duty of supervision. The auditor should not be in business or business relationship with the client, nor be a partner, board member, or employee of the company.
Demonstration of Care Required by the Occupation
It is a profession that requires careful attention to the requirements of the profession during the course of the audit and during the reporting phase, in full compliance with the audit standards, and the best use of knowledge, experience and skills. The moral, professional and legal responsibilities of the auditor in case of failure to comply with these conditions are natural.
Working Area Standards
They are rules that the controller must obey during the audit operation. These Standards are divided into the following groups. 1-The standard of auditing planning and surveillance. 2-Internal control system and surveillance standard. 3-Adequate and reliable evidence gathering standard.
Audit Planning and Supervision Standard
Planning of audit programs, Planning of time and time, Assignment and monitoring to audit staff A written document for the planning work, including information about the client’s business, segmentation of the audit work, valuation of the level of importance, valuation of the audit risk, evaluation of audit purposes, General plan is compulsory according to international standards.
Internal Control System Information Standard
Information on the internal control system is needed to plan the audit and to determine the nature, timing and size of the tests to be performed.
Adequate and Secure Evidence Collection Standard
A sufficient number of reliable evidence is obtained through document review, observation, questioning and questioning in order to provide an adequate basis for an opinion on the audited financial statements.
-The auditor should sum up the evidence that will affect his opinion on the financial statement. – The evidence must be collected in accordance with the standards document examination, observation, questioning and verification, and other necessary audit techniques. – The scribes must be of sufficient number to reach the point of view. – The evidence must be reliable.
These are the rules that the auditor must comply with when preparing the report and in commenting on the report. These are: – Compliance with the generally accepted accounting principles. – Standard of invariance of general acceptance accounting principles – Standard of adequacy of explanations on the financial statements. -The reporting standard.
Risks in the Control of Financial Statements
The risks arising in the control of financial statements are 2. 1-Risk of audit 2-Business Riski
It is possible that the financial statements will arrive at the correct presentation of the financial statements, and that there will be a positive opinion on the financial statements, if there are material errors in the financial statements.
Elements of Control Riskin
Structural Risk, Control Risk, Finding Risk.
The assumption that there are no policies and methods that make up the Internal Control system is that some of its accounts may be affected by significant errors due to certain structural and environmental characteristics.
the internal control system and the methods that make up the internal control system are at risk of having errors that can not be prevented or found. Because the restrictions in the internal control system do not completely prevent or prevent all important errors, Control Risks are never zero.
Significant information on the financial tables is the risk that the auditor will not be able to find the wrong information on the wrong Financial Tables with the audit methods of the auditor. This risk may arise from uncertainties arising from the existence of an account balance or where the entire transaction history is not audited by the auditor, or from the uncertainty arising from misinterpretation of the results of the audit by the auditor incorrectly applying an appropriate methodology to the auditor.
Internal Control System
the policies and methods adopted by the business management that help to ensure that the entity’s assets are protected, that errors and corruption are prevented, that the accounting information is accurate and reliable, that the accounting information is prepared in a timely manner, and that business activities are carried out in accordance with management policies.
Objectives of the Internal Control System
The internal control system has its Core, General and Special purposes.
Main Objectives of the Internal Control System
To ensure the right and reliability of the accounting information, To ensure the management policies of the business activities, To comply with the Plans and the legislation, To ensure the economic and efficient use of resources, To achieve the objectives and targets set for the activities.
General Objectives of the Internal Control System
Transactions should be recorded in accordance with the general and special authority to which the management transfers and to fulfill the accountability obligation. It should be recorded so as to have access to assets and documents. Access to assets and documents should be limited to authorized personnel. Existing assets should be compared with specific records of liability and when any difference is determined, the necessary investigation should be made according to the difference feature.
Specific Objectives of the Internal Control System
Transactions should be conducted in accordance with the general and special authority to which the management relinquishes. The records should show the actual transactions of the operator. Processes must be recorded correctly in terms of amount. Processes must be classified correctly. Recording of transactions before and after the time the transactions occur, financial tables also lead to misrepresentation of amounts. Accounting and liability records are sometimes compared with the related assets.
– Physical examination and counting, – Verification, – Recording system, – Right monitoring, – Monitoring system forwards, – Observation, 7 – Simulation, – Examination of documents, – Examination, – Investigation, – Calculation.
The auditor does not require a written response from outside the business. This technique is used to investigate the accuracy of account balances and transactions
Financial Investigation and Counting
It is a technique used to investigate whether the physical assets shown in documents and business records actually exist. This technique is limited to tangible assets and official documents. The census process is used to indicate the extent to which property, plant and equipment are accounted for by the balance sheet as of the balance sheet date.
Recording Monitoring System
It is the examination and recording of the documents proving the procedures to determine the accuracy of the recorded transactions. In this technique, comparison is made between large book accounts and journal records and journal records to source documents.
It is the testimony of the auditor’s business activities. The technical technical operation is intended to determine who made the activity and how it was done.
Forward Tracking Technique of Record System
The auditor selects the source documents through sampling and compares these documents with the journal, the ledger, and the ledger records. This technique investigates whether the documents are out of date.
Rather than subjecting documents and records to careful scrutiny, it is unusual to require further investigation, and to look at documents and tablelands to determine what remains.
It is the process of verification by the auditor of the arithmetic calculations that the operator has made. These are the main recalculations that the auditor will perform to investigate the arithmetic errors. Reclassification of deferred receivable provisions of deferred receivables, Recalculation of depreciation provisions Recalculation of arithmetic transactions of inventory lists Recalculation of arithmetical transactions of pay schedules.
Technical Investigation Technique
Investigates whether the documents are falsified. The inspector investigates the validity of the signatures on the documents, whether they are following the sequence number, whether the documents are being destroyed by the registration officer or not.
The Questioning Technique
Written and oral questioning techniques are used during inspections. The answers to the questions must be verified by means of valuation techniques. Both the technical and control tests as well as the material accuracy test are applied.
They are evidence that the independent auditor has tracked the audit techniques, the tests they have performed, the information they have gained, and the results they have achieved based on their review. work papers, audit programs, analyzes, letters requesting confirmation of notes, and replies of the business documents obtained and prepared by the auditor and the statements.
Helping to monitor the development of the business by periods, Prevent the re-preparation of the working papers for each period under review. It keeps specially detailed information that can be used for other purposes
The Standard Audit Report is used when a positive opinion is expressed: Standard Audit Report: Financial statements indicate that the financial position of the Operator accurately reflects its operating results and its cash flow in accordance with generally accepted accounting principles. It also indicates that sufficient disclosures are made in the footnotes and annexes of the financial statements.
Provisional Opinion Reporting
An audit report that provides a conditional opinion separates this account from the positive opinion of the auditor by explaining the details of an account on the financial statements. The opinion expressing that the statements are presented as a whole on condition that certain exceptions are kept is called conditional opinion.
The auditor reports negatively the opinion of the Financial Statements as a whole, in accordance with generally accepted accounting principles, in the opinion that the financial position of the operator and the results of operations are not accurately shown.
The auditor is refraining from submitting any opinion on the Financial Statements that he can not give any opinion. The auditor refrains from submitting his opinion when he can not obtain adequate and valid remuneration due to the scope limitation in order to form an opinion on the whole of the financial statements.