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An Audit Procedure outlines the specific steps and methods auditors use to examine financial records, internal controls, and business operations. In Ireland, these procedures follow standards set by the Irish Auditing and Accounting Supervisory Authority (IAASA) and help ensure compliance with the Companies Act 2014.

Good audit procedures map out exactly what evidence to gather, which documents to review, and how to test key business processes. They guide auditors through essential tasks like checking bank statements, confirming account balances, reviewing contracts, and interviewing staff. This systematic approach helps catch errors, prevent fraud, and maintain high standards of financial reporting across Irish businesses.

Use Audit Procedures during any systematic review of your organization's financial activities and controls. They're especially crucial when preparing for annual statutory audits required by the Companies Act 2014, or when Irish regulators like the IAASA request specific financial information.

These procedures become vital during major business changes, such as mergers, expansions, or new system implementations. They help spot financial irregularities, protect against fraud, and ensure tax compliance. Many Irish companies also run audit procedures before seeking investment, during due diligence processes, or when addressing specific concerns raised by shareholders or board members.

• Substantive Testing Procedures: Detailed examinations of financial transactions, including vouching expenses and confirming account balances
• Compliance Audit Procedures: Reviews focusing on adherence to Irish regulatory requirements and internal policies
• Analytical Procedures: Statistical analysis and trend comparisons to identify unusual patterns or discrepancies
• Control Testing Procedures: Evaluations of internal control systems and their effectiveness in preventing errors
• IT Audit Procedures: Specialized reviews of digital systems, cybersecurity measures, and data integrity controls

• External Auditors: Independent professionals from registered audit firms who design and execute audit procedures in line with IAASA standards
• Internal Audit Teams: Company employees who develop and implement ongoing audit procedures for regular monitoring
• Finance Directors: Oversee the audit process and ensure procedures align with company objectives and regulatory requirements
• Audit Committee Members: Review and approve audit procedures, ensuring they meet governance standards
• Company Management: Provide necessary documentation and implement recommendations from audit findings

• Business Overview: Gather detailed information about company operations, systems, and key financial processes
• Risk Assessment: Document potential areas of financial risk, control weaknesses, and compliance requirements
• Resource Planning: Identify team members, timeline, and tools needed for audit execution
• Documentation Review: Collect relevant policies, previous audit reports, and financial statements
• Compliance Check: Review current Irish auditing standards and IAASA requirements
• Procedure Design: Create step-by-step testing methods aligned with identified risks and objectives

• Scope Definition: Clear statement of audit objectives, timeframe, and areas under review
• Methodology Section: Detailed testing procedures aligned with Irish Auditing Standards
• Risk Assessment Framework: Identification and evaluation criteria for financial and operational risks
• Documentation Requirements: Specific records, evidence, and working papers needed
• Compliance References: Citations of relevant Companies Act 2014 sections and IAASA guidelines
• Quality Control Measures: Review protocols and sign-off requirements for each audit step
• Reporting Framework: Structure for documenting findings and recommendations

Audit Procedures are often confused with Compliance Procedure, but they serve distinct purposes in Irish business operations. While both involve systematic reviews, their scope and application differ significantly.

• Primary Focus: Audit Procedures examine financial accuracy and control effectiveness, while Compliance Procedures ensure adherence to regulatory requirements and internal policies
• Timing and Frequency: Audit Procedures typically follow a scheduled cycle (often annual) with specific testing phases, whereas Compliance Procedures run continuously throughout the year
• Evidence Requirements: Audit Procedures demand detailed financial documentation and testing evidence, while Compliance Procedures focus more on process documentation and policy adherence records
• Reporting Structure: Audit Procedures result in formal audit opinions and findings, while Compliance Procedures generate ongoing monitoring reports and regulatory updates