Financial Audit Process

Step 1: Planning
- Initial management meeting
- Business analysis
- Risk analysis on corporate level
- Determination of resources
- Time table
- Engagement letter

Step 2: Test of Controls
- Walk through tests
- Tests of manual controls
- Tests of IT controls
- Review internal control procedures
- Interview staff and management

Step 3: Test of Details
- Substantive Audit Procedures
- Analytical tests of accounting data
- Sampling of accounting data
- Inspection of assets, e.g. plant and equipment, inventories    
- Third party confirmations on e.g. receivables, liabilities, legal
- Interview staff and management

Step 4: Reporting
- Issue auditor's report
- Issue audit opinion
- Present results to management, board