Date:05.06.2016, 23:06 There are seven phases to be passed through by an auditor in auditing financial statements. They are described in this post. Follow on Advertisement Phase-1. Audit Planning Audit planning involves developing an overall strategy for performing the audit. For example, if the auditors believe that internal control is weak for an important area (that is, control risk is high they will assess the risk of material misstatement as high. The Audit Standards Board more Adhering to Generally Accepted Accounting Principles and Standards. Generally accepted accounting principles (GAAP ) define acceptable practices in the preparation of financial statements in the United States.
Example 4: Retail business providing minor building and construction services Harry's Hardware is a business that sells building equipment to builders and homeowners. For an additional fee Harry's Hardware can arrange for the installation of certain products, such as a skylight.
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