Audit 

B.B Whitehouse have experienced qualified accountants in the field of audit. Our specialist audit team deliver quality in adherence with Australian and International standards. We endeavour to affect minimal impact on our clients, whilst ensuring that our audit services not only achieve standard compliance goals, but also provide assistance and direction to the client on a positive basis. Owing to our optimum performance as auditors, we’re often called upon to perform work at short notice and we handle such assignments without compromising with the high standard of the audit accounting sector/industry.

The audit is generally conducted at two levels of testing involving the compliance testing and substantive testing. Compliance testing reviews the operations of the business, its processes and systems of control. This section of the audit helps our auditors and accountants in assessing various sections of the business that in turn allows the audit team to advise the client in relation to its weaknesses and strengths in operation. Further, it also highlights areas of concern or areas that require immediate attention. The substantive testing then follows with the “number crunching” to provide support to the compliance testing findings.
Combining various international audit accounting and auditing skills, our audit team also undertakes consulting roles in the sphere of active business strategy and planned development.

It is with these skills that our audit team also undertake consulting roles and active business strategy and plan developments.

The auditors provide services including...

• Private and Public companies including foreign owned companies
• Not-for-profit organisations
• Aged Care and Retirement industry
• Trust Account Audits – Real Estate, Accountants, Insurance and Lawyers
• Investigative Audits
• Government Compliance Audit, including B.S.A

Our expertise in the field of auditing and audit accounting has supported us in servicing many clients that are spread across Australia. With state-of-the-art infrastructure and a wonderful team of auditors and accountants in support, we offer our services in Brisbane, Gold Coast, Toowoomba, Western and Central Queensland, Melbourne, Sydney, Northern New South Wales and host of other locations as required.

WHAT IS AN AUDIT?

The Macquarie Dictionary (2nd Edition) describes Audit as an official examination and verification of accounts and record especially of financial accounts”.

This is a simple description but none the less is the very principal behind an audit. In audit accounting the auditor has to form an opinion as to whether the financial accounts are correct or not correct. To do this the auditor and his team will undertake a process of interviews of client personnel, inspect records and review systems. He will document all the information gathered as audit accounting evidence. This evidence will back up his final conclusions as to whether the financial statement audit is correct without qualification. As well as signing off on an audit report the auditors will prepare a list of audit queries and recommendations that were found during the audit accounting process. The auditors will request that these matters are settled to everyone’s satisfaction.

There are other audits other than the verification of financial accounts. These are usually requested to evaluate the performance of management or of an entity’s accounting systems, or any other process. It is the auditor’s duty to reach a conclusion and report based on such evidence as is gathered.

Audit Techniques

The auditor will initially interview management personnel to document systems and procedures employed including the internal control operating in the audit. The auditors will then apply compliance testing to ensure that the information documented is correct. The auditor will then asses the risk factor and apply substantive tests based on that risk factor analysis. Note that the auditor does not usually inspect all documentation when applying substantive tests but relies on statistical sampling which will vary depending on the assessed risk. The auditor will also take into account materiality and prior experience. This is a very simple guide to audit approach and in fact the practical approach is more detailed as follows.

Client Engagement Letter
This letter sets out the work and terms of the audit that the auditor undertakes. This is governed by an auditing standard.

Review and Understand Clients Business
An audit should not be undertaken unless the business of the client is understood. This is documented in the permanent audit file plus detailed in the planning section of the current audit file.

Assess the audit risk factor

Assess the audit materiality amount

Put together audit programme suitable for audit

Audit Attendance
Depending on size the audit should be attended with interim visits and a final visit. Review and document internal controls and list weaknesses particularly those that affect the information in the Financial Account. Discuss and clear with management.
Review the audit risk factor based on discussions with those charged with governance. Risk is broken down into Inherent risk, Control risk and Detection risk.

Audit Compliance Tests
Perform audit tests to check the correctness and effectiveness of internal control.

Audit Substantive Tests
Perform detailed audit tests of documents based on results and reliance of internal control.
Perform “Balance Sheet” Audit
Check all balances in financial report including notes to accounts.

Finally
Prepare Management letter to the audit client. Prepare audit report giving an opinion on the Financial Statements.
There are many further audit procedures required or may be necessary for the auditor to form an opinion in the audit report.

Corporate Governance
The auditor relies more and more on good Corporate Governance to perform an audit that is at the high levels required in today’s business environment.

Internal Audit
It is of great benefit to the external auditor if an internal audit exists. An internal auditor is extremely helpful to the client management and Board of Directors in reporting errors and situations when systems have broken down and need attention.

IT and its Effect on Client and Auditor
The client management and personnel and the auditor must have a thorough knowledge of IT Technology. B.B Whitehouse Group have auditors that are proficient in IT and the practice has a separate department of IT Specialists that can be called upon to analyse and recommend advice of difficult IT problems. Separate Audit programmes are utilised to ensure that IT systems audit risk and controls are analysed completely.

B.B. Whitehouse Group audit team has an excess of 50 years experience in external and internal auditing both in Australia and overseas in the UK and Canada. Audits of any size are performed.

Frequently Asked Questions

Is one of the auditor’s duties to discover fraud?
Yes. However this is not the main duty and, may only occur in the course of the audit accountancy work to verify financial accounts.

What is the situation if there is insufficient information for the auditor to form an opinion?
The audit report must state clearly that there was insufficient evidence to form an opinion.

How does independence affect the auditor?
The auditor must be completely independent of the audit client. The auditor must not only be independent but must be seen to be independent. This does not mean the auditor can’t be friendly and helpful, more the reverse, in that the auditor can assist with any problem of the client audit. However the auditor must be independent in that decisions cannot be made for the client that would prejudice the auditor’s position of impartiality.