Session 1 publication pre lecture - introduction to audit and corporate governance
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Transcript of Session 1 publication pre lecture - introduction to audit and corporate governance
![Page 1: Session 1 publication pre lecture - introduction to audit and corporate governance](https://reader036.fdocuments.us/reader036/viewer/2022070321/558e0aac1a28abc6178b45e4/html5/thumbnails/1.jpg)
Audability Ltd 1
1. Introduction to audit and corporate governance
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Audability Ltd 2
Spot the auditor
Draw a picture of an auditor
Group exercise
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Audability Ltd 3
Spot the auditor
Group exercise
![Page 4: Session 1 publication pre lecture - introduction to audit and corporate governance](https://reader036.fdocuments.us/reader036/viewer/2022070321/558e0aac1a28abc6178b45e4/html5/thumbnails/4.jpg)
Audability Ltd 4
An audit involves….
Investigating information prepared by someone else to decide whether it is fairly stated
Group exercise
![Page 5: Session 1 publication pre lecture - introduction to audit and corporate governance](https://reader036.fdocuments.us/reader036/viewer/2022070321/558e0aac1a28abc6178b45e4/html5/thumbnails/5.jpg)
Audability Ltd 5
An audit involves….
Reporting back on your results
Group exercise
![Page 6: Session 1 publication pre lecture - introduction to audit and corporate governance](https://reader036.fdocuments.us/reader036/viewer/2022070321/558e0aac1a28abc6178b45e4/html5/thumbnails/6.jpg)
Audability Ltd 6
Four key concepts
Planning Risk assessment Evidence Materiality
Group exercise
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Audability Ltd 7
![Page 8: Session 1 publication pre lecture - introduction to audit and corporate governance](https://reader036.fdocuments.us/reader036/viewer/2022070321/558e0aac1a28abc6178b45e4/html5/thumbnails/8.jpg)
Audability Ltd 8
What is audit?
Narrow External Audit
Wider Internal Audit
Widest Anything that uses the work audit e.g. a ‘Health and Safety Audit’
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Audability Ltd 9
External versus internal audit
External Audit Internal Audit
Requirement Usually yes e.g. Companies Act
Usually no
Objectives ‘True and fair view’ & sometimes more
Assurance on systems & controls
Independence Never an employee
Can be employees
Reporting Shareholders/ public
Management
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Audability Ltd 10
External audit: private vs public
Private sector Public sector
Requirement Yes – Companies Act
Yes – different bits of legislation
Objectives ‘True and fair view’ & sometimes more
‘True and fair view’ & value for money
Independence Firm – appointed by shareholders
Agency or firm – usually not appointed by body
Reporting Shareholders Body/Parliament/ Public
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Audability Ltd 11
Some key qualities of auditors …
o Independenceo Integrityo Objectivityo Professional scepticism
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Audability Ltd 12
Professional sceptisism
Group exercise
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Audability Ltd 13
Benefits of an audit
What do you think are the benefits of having an audit (external or internal)?
Group exercise
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Audability Ltd 14
Benefits of audit
Funders Management
Accountability
Funding