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Husayn Husayn Shihata, Abd Al-Sattar Abu Ghuddah's A Guide to Accounting Zakah PDF

By Husayn Husayn Shihata, Abd Al-Sattar Abu Ghuddah

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Extra info for A Guide to Accounting Zakah

Sample text

In these circumstances the external auditor should review the work performed by the internal auditor. The internal audit department reports directly to the president or board of directors. An internal auditor must be independent of the department heads and other executives whose work he reviews. Internal auditors, however, can never be independent in the same sense as the independent auditors because they are employees of the company they are examining. Internal auditors have two primary effects on a financial statement audit: 1 Their existence and work may affect the nature, timing, and extent of audit procedures.

They are heavily involved in the planning of the audit, evaluation of the results and determination of the audit opinion. The degree to which they are involved in the audit will vary between firms and assignments because firms have to ensure that partners allocate their time in an appropriate way. Partners will delegate as much of the work as possible to experienced managers and seniors. Moreover, the larger the accountancy firm the more variation there is likely to be in practice depending on the nature of the engagement.

Romeo, Simon and Floyd Norris, 2002, “New Bookkeeping Problems Disclosed by WorldCom,” New York Times, pp. A1–C8, 2 July. Spiegel, Peter, 2003, “WorldCom finance chief ‘tried to delay inquiry’,” Financial Times, p. 1. July 9. Wolffe, Richard, 2002, “Bush condemns new scandal as outrageous,” Financial Times, p. 1, June 27. ■ The Independent External Auditor: Training, Licensing and Authority Independent auditors have primary responsibility to the performance of the audit function on published financial statements of publicly traded companies and non-public companies.

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