Auditing

ABSTRACT

This audit is based on the financials for Keystone Computers & Networks. The audit will be conducted per the Accounting principles and the facts. The company will handle the audit accordingly and discrete. The company Adams, Barnes & Co. will make sure that the audit will go as smoothly as possible.

Keystone Computers

The first thing that Adams, Barnes & Company has a duty to do is describe what the first engagements will be. Adams, Barnes & Company will need to audit Keystones financials for the year ending 12/31/2005 and makes sure that they send out a letter of compliance to the client so that they will have an understanding of what is being done and how it applies to their company.

“The Auditors should establish an understanding with the client regarding the services to be performed, including the objectives of the engagement, management’s responsibilities, the auditor’s responsibilities, and limitations of the engagement”. (Whittington, 2010, p. 190).

We will conduct the audit according to the Accounting Standards. In the audit Keystone Computers business that is performed in order to product revenue will be audited to make sure that the financials are the way that they are suppose to be. “The Auditors have a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Reasonable assurance is achieved when audit risk, the risk that the auditor may unknowingly fail to appropriately modify the opinion on financial statements that are materially misstated, is at an appropriately low level. Financial statements may be misstated due to various causes, including errors, fraud, and certain illegal acts”. (Whittington, 2010, p. 39).

“Purpose - The purpose of this paper is to provide insights into the current roles and responsibilities of the internal audit (IA) function and the factors perceived to be...