How do u do a audit from planning stage to completion

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Accepted Answer

An audit is conducted in stages from planning to completion, involving risk assessment, testing, documentation, and reporting.

1. Planning stage involves understanding the client's business, identifying risks, and developing an audit plan.
2. Risk assessment is crucial to determine the areas to focus on during the audit.
3. Testing stage includes gathering evidence, performing analytical procedures, and conducting substantive tests.
4. Documentation is essential to support the audit findings and conclusions.
5. Reporting stage involves communicating the audit results to stakeholders.
6. Throughout the audit process, auditors must adhere to professional standards and maintain independence.
7. Examples of audit procedures include confirming account balances with third parties, observing inventory counts, and reviewing internal controls.