The CEFRG Audit Methodology was designed and developed by us to specifically address the categorical statements that the auditor makes in his standard audit reports under the Companies Act. Here is what the auditor says in his report about his/her responsibility in addition to many other matters.
“Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.”
The CEFRG AUDIT METHODOLOGY is a well-documented and a fully integrated approach to performing audit in “in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, which require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement– and performing procedures to obtain audit evidence and that the audit evidence we have obtained is sufficient and appropriate”
The CEFRG Audit Methodology fully dovetails the entire standards on auditing to a structured approach to performing audits and build crucial audit evidence to support their assertions as above. This 37 modules of robust, systematic and a disciplined approach to building audit evidence is conspicuously absent in many of the smaller audit firms and they struggle to achieve it.This is a huge risk they assume needlessly.
|C||CLIENT ASSESSMENT /ACCEPTANCE / CONTINUANCE This comprises 7 Modules|
|E||ENGAGEMENT PLANNING, RISK ASSESSMENT & DEVELOPMENT OF AUDIT APPROACH This comprises 11 Modules|
|F||FIELD WORK – EXECUTION OF AUDIT PLAN This comprises 6 Modules|
|R||REPORTING & CONCLUSION This comprises 7 Modules|
|G||GOVERNANCE – ENGAGEMENT ADMINISTRATION This comprises 6 Modules|
CEFRG has also developed the CEFRG Audit Assertions and has designed a disciplined way of creating the Audit Work Paper Files with techniques and protocols for copious referencing and linking. Files created using our methodology and templates are capable of cold independent reviews of such audit files by anyone outside the audit team.
We also custom design and develop appropriate AUDIT PLANS, APPROACH PLANS and AUDIT PROGRAMS for specific purposes.
Call us or send us an email to quickly understand as to how we can support you to substantially improve your professional work and its engagement economics.