Auditor Challenges in Gaining Company Understanding (Essay Sample)

Auditor Challenges in Gaining Company Understanding
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An audit team should observe professionalism when performing an audit exercise of their clients. They should have the ability to understand the different needs of the stakeholders. As a result, they need to exercise independence in their investigation to provide a good report. Gurama & Mansor (2018) highlights that understanding the company and its environment is an important part of the audit work. The understanding helps the auditor in identifying the areas which might be challenging during the exercise. Proper planning of the audit is vital as it assists the auditor in avoiding errors.
There are various approaches the audit team should use in gaining the essential knowledge for the company’s business as well as that of the competing company. The first approach is the use of the inquiry approach. The inquiry is an approach that involves the audit team asking questions to some of the company’s stakeholders, such as managers and accountants. The inquiry also involves going through the past company documents, interacting with company stakeholders, and the previous. It is an important approach that can help the team in gaining an understanding of the company.