Auditing of Internal Control Systems. The Interview Method - Procedures and Practice
Author:
Ion SMEDOIU
JEL:
M 41, M 42
DOI:
Keywords:
interview (inquiry) method, concept, misstatement risk, area of audit, financial auditor
Abstract:
Starting from audit planning requirements, the auditor must identify and assess risks of material misstatements of financial statements and assertions for groups of transactions, account balances and financial statements disclosures. The interview method is recommended in this respect by the International Standard on Auditing 315 “Identifying and assessing risks of material misstatement by understanding the entity and its environment.”\r\nUsing the provisions of ISA 315, the relevant accounting standards and the practical experience as a financial auditor in Romania, the author has put together a concept on the interview method as an essential area of audit. \r\nDuring an audit, this interview method creates the necessary conditions to correctly determine significant audit areas and the nature and magnitude of procedures for obtaining audit evidence. \r\nFrom a practical perspective, the interview method can be applied in each audit area (property, plant and equipment, investments, inventories, treasury, account receivables, income taxes, equity, profit and loss account, general ledgers etc.). \r\n\r\n\r\n