The auditing process

Businesses both incorporated and unincorporated need audit firms in Pakistan. The need is not only derived because it is statutory requirement by the Securities Exchange Commission of Pakistan. The process of audit reports can serve many purposes. The use of an external audit firm in Pakistan, is necessary for Pakistan based companies, because the audit would be conducted according to the local laws and regulation that have to be implemented while auditing.

The audit process starts long before the, audit could actually begin. The first stage is planning for audit, in this stage the auditors and company’s executives meet and discuss the scope of the audit. The auditors discuss about the internal controls of the company, information is gathered, existing controls are evaluated, and then further steps of audit are planned. Before the audit could start there is an announcement letter, in which client is informed about the commencement of the audit. This is followed by an initial meeting, in which the unit, or the organization to be audited is described by the client. Next in the process of auditing, is the preliminary survey by the auditors, it is to gather information about the organization, information about the operations. This is done by auditors so that they can have a general idea about the organization. After this the internal control review starts which is time consuming, because a lot of information is gathered. After the completion of these stages, when the auditors have enough information. They audit starts.

The audit must be completed within a given time period. When the audit report has been completed, a draft is first discussed by the management of the audit, before it is presented to the client.  This is to ensure that the audit was completed in an ethical and legal manner, and that the audit report has covered the spectrum it is expected to. After the draft presentation process is completed, the exit conference starts. Where the auditors meet with the management to discuss and validate the facts of the audit report. After the audit report is completed, there are many discussion stages that follow. After these discussions and meetings, a formal draft of the audit report is created.

The formal draft of the audit report must include the findings of the audit, recommendation, and action plan. In the formal draft there are revisions made from the findings of the exit conference, and then changes are made, and the formal draft is sent to client. After the changed have been reviewed by the client and the audits, the final report is issued.

If your business is looking for a trusted audit firm in Karachi. Sayub & co. is the name you could trust. Our team of auditors will perform the above mentioned tasks with diligence and in according to the legal requirement of the Institute of Chartered Accountants of Pakistan. For more information about our auditing services contact us today.