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6.(TCO K) You are the Senior Auditor for WWZ Co. and you have completed the testing of all the accounts.However, prior to issuing your report, what are at least five other procedures orreviews that must be performed prior to issuing your report?Explain your responses(Points : 30)
-ObservationObservation consists of lolling at the process or procedures which are performed by others (management). As an auditor it is my responsibility to observe the procedure of inventory counting as conducted by the management. -Recalculation and ReperformanceIn order to confirm whether the figures shown in the financial statements are accurate or not, auditor can recalculate few calculations. Recalculation can also be done in order to check the internal controls ofthe company. If there is any discrepancy in the calculation of the financial information means the financial statements does not depict the true and fair view and qualified reports needs to be issued. As an auditor it is my responsibility to recalculate the calculations of those items in which there are changes of fraud so as provide independent and accurate report. -DocumentationProper working papers validate professionalism and document the work that was done from the preliminary stages of a project audit through the final report. Audit working papers also show whether due professional care was exercised and illustrate compliance with professional auditing standards. Careful documentation of work performed is necessary to support the findings, recommendations, and opinions contained in the final audit report or close-out letter.As an auditor it is my responsibility to document all the audit evidences and all the audit procedures performed by me so as to represent my work in case of doubt and also to cross check my working in case any changes are made by the management.